Cover Letter 9-25-2012 Truckee River Revised Draft Decision · Revised Draft Decision Revised Draft...

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September 25, 2012 ELECTRONIC MAIL To: Enclosed Service List Ladies and Gentlemen: PROPOSED REVISIONS TO JULY 18, 2012 DRAFT DECISION CONDITIONALLY APPROVING APPLICATIONS 31487 AND 31488 AND CONDITIONALLY APPROVING PETITIONS TO CHANGE LICENSE 3723 (APPLICATION 5169), LICENSE 4196 (APPLICATION 9247), PERMIT 11605 (APPLCATION 15673), AND LICENSE 10180 (APPLICATION 18006) – INDEPENDENCE CREEK, LITTLE TRUCKEE RIVER, AND PROSSER CREEK TRIBUTARY TO THE TRUCKEE RIVER, NEVADA AND SIERRA COUNTIES The State Water Resources Control Board (State Water Board or Board) will consider adopting the enclosed revised draft decision at the State Water Board meeting tentatively scheduled for Tuesday, October 16, 2012, in the Coastal Hearing Room on the second floor of the Cal/EPA Headquarters Building at 1001 I Street in Sacramento. The State Water Board will issue a public notice of the meeting at least ten days in advance. Interested persons may comment on the draft decision. The draft decision has already been circulated for public comment; accordingly, oral and written comments must be limited to the strikeout/underline text made to the revised draft decision. In order to be fully considered at the Board meeting, written comments must be received by noon on Monday, October 8, 2012. Written comments must be served on the Service List of Parties to Exchange Information in this proceeding. Because all parties have agreed to electronic service in this proceeding, electronic service is acceptable. At the Board meeting, the public will have a brief opportunity to comment on the revisions to the draft decision. Oral comments on agenda items will be limited to 5 minutes or otherwise at the discretion of the Board Chair. Parties may not introduce evidence at the Board meeting. A summary of the proposed revisions follows: 1. Place of Use Map. The revised draft decision approves the place of use as shown on the most recent version of Map No. 320-208-189A-1. Section 5.5.2 of the July 18, 2012 draft decision, which disapproved certain changes to portions of the place of use, has

Transcript of Cover Letter 9-25-2012 Truckee River Revised Draft Decision · Revised Draft Decision Revised Draft...

Page 1: Cover Letter 9-25-2012 Truckee River Revised Draft Decision · Revised Draft Decision Revised Draft Permits for Applications 31487 and 31488 Revised Draft Amended Permit 11605 (Application

September 25, 2012 ELECTRONIC MAIL To: Enclosed Service List Ladies and Gentlemen: PROPOSED REVISIONS TO JULY 18, 2012 DRAFT DECISION CONDITIONALLY APPROVING APPLICATIONS 31487 AND 31488 AND CONDITIONALLY APPROVING PETITIONS TO CHANGE LICENSE 3723 (APPLICATION 5169), LICENSE 4196 (APPLICATION 9247), PERMIT 11605 (APPLCATION 15673), AND LICENSE 10180 (APPLICATION 18006) – INDEPENDENCE CREEK, LITTLE TRUCKEE RIVER, AND PROSSER CREEK TRIBUTARY TO THE TRUCKEE RIVER, NEVADA AND SIERRA COUNTIES The State Water Resources Control Board (State Water Board or Board) will consider adopting the enclosed revised draft decision at the State Water Board meeting tentatively scheduled for Tuesday, October 16, 2012, in the Coastal Hearing Room on the second floor of the Cal/EPA Headquarters Building at 1001 I Street in Sacramento. The State Water Board will issue a public notice of the meeting at least ten days in advance. Interested persons may comment on the draft decision. The draft decision has already been circulated for public comment; accordingly, oral and written comments must be limited to the strikeout/underline text made to the revised draft decision.

In order to be fully considered at the Board meeting, written comments must be received by noon on Monday, October 8, 2012. Written comments must be served on the Service List of Parties to Exchange Information in this proceeding. Because all parties have agreed to electronic service in this proceeding, electronic service is acceptable.

At the Board meeting, the public will have a brief opportunity to comment on the revisions to the draft decision. Oral comments on agenda items will be limited to 5 minutes or otherwise at the discretion of the Board Chair. Parties may not introduce evidence at the Board meeting. A summary of the proposed revisions follows:

1. Place of Use Map. The revised draft decision approves the place of use as shown on

the most recent version of Map No. 320-208-189A-1. Section 5.5.2 of the July 18, 2012

draft decision, which disapproved certain changes to portions of the place of use, has

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Enclosed Service List - 2 - September 25, 2012

been deleted in its entirety and the sections have been renumbered accordingly. Other

revisions have been made to the draft decision and permit and license terms consistent

with the Board’s approval.

2. Place of Use Irrigated Acreage Amount. The revised draft decision approves a net

irrigated acreage amount of 26,800 acres in the Truckee Meadows area for Permit

11605, License 4196, License 10180, and permits issued pursuant to Application 31487

and Application 31488. The maximum net irrigated acreage amount authorized under

License 3723 for the Truckee Meadows area— 29,000 acres—is not reduced. The

permits and licenses have been revised accordingly.

3. Urban Water Management Plan Requirement. This requirement has been removed from

the revised draft decision and the permits and licenses.

4. Farad Diversion Dam Flow Requirement. The revised draft decision continues to require

compliance with the Farad bypass flow requirement, but the permit and license terms

have been clarified as to its applicability.

5. Stampede Reservoir Minimum Release Condition. The revised draft decision continues

to require compliance with the Stampede Reservoir instream flow condition, but the term

has been revised so that it does not apply to water collected to storage in other

reservoirs and subsequently transferred to Stampede Reservoir. Reclamation will be

required to maintain of an account of water stored in, and transferred to, Stampede

Reservoir.

6. Interstate Compact Terms. Permit and license terms that were intended to address the

appropriation and use of water in the Truckee River basin pending the implementation of

a Congressionally-approved interstate compact have been either removed or modified to

refer to Truckee-Carson-Pyramid Lake Water Rights Settlement Act.

7. Outlet Pipe Maintenance Requirement Term. This term has been revised to require

each permittee or licensee to maintain the existing outlet pipe for its reservoir, but the

term does not require a permittee or licensee to maintain the existing outlet pipe at a

reservoir that the permittee or licensee does not own. No water shall be diverted or

rediverted at another reservoir, however, if that reservoir’s outlet pipe is not in working

order.

8. Non-substantive Changes. Revisions have been made for purposes of clarification and

to correct typographical errors. The revised draft decision now also contains a Table of

Contents.

A copy of the revised draft decision will also be posted on the website dedicated to the hearing: http://www.waterboards.ca.gov/waterrights/water_issues/programs/hearings/truckee_river/index.shtml.

Written comments are to be addressed and submitted to:

Jeanine Townsend Clerk to the Board

State Water Resources Control Board P.O. Box 100

Sacramento, CA 95812-0100

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Enclosed Service List - 3 - September 25, 2012 You may also submit your comments to Ms. Townsend by fax at (916) 341-5620, by email at [email protected], or by hand delivery to the following location:

Jeanine Townsend, Clerk to the Board Executive Office

State Water Resources Control Board Cal/EPA Headquarters

1001 “I” Street, 24th Floor Sacramento, CA 95814

Couriers delivering comments must check in with lobby security and have them contact the Executive Office on the 24th floor at (916) 341-5600. Please include the subject line, “COMMENT LETTER – 10/16/12 BOARD MEETING: Truckee River Decision.” Any faxed or emailed items must be followed by a mailed or delivered hard copy with an original signature. If you have any non-controversial procedural questions, please contact Jean McCue, Water Resource Control Engineer, at (916) 341 5351 or by email at [email protected]. Sincerely, Michael Buckman, Chief Hearings Unit Enclosures: Truckee River Hearing Service List (Updated September 25, 2012) Revised Draft Decision Revised Draft Permits for Applications 31487 and 31488 Revised Draft Amended Permit 11605 (Application 15673) Revised Draft Amended Licenses 3723 (Application 5169), 4196 (Application

9247); and 10180 (Application 18006) cc: Janet Goldsmith Kronick Moskovitz Tiedemann & Girard [email protected]

Dan Fuchs Deputy Attorney General Office of the Attorney General [email protected]

Staff
Stamp
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Enclosed Service List - 4 - September 25, 2012

SERVICE LIST OF PARTIES TO EXCHANGE INFORMATION: TRUCKEE RIVER HEARING - JULY 21, 22, 23, 28 AND 29, 2010

SERVICE LIST

(Updated September 25, 2012)

PARTIES TO BE SERVED WITH WRITTEN TESTIMONY, EXHIBITS, AND OTHER DOCUMENTS. (Note: The parties listed below agreed to accept electronic service, pursuant to the rules specified in the hearing notice.) TRUCKEE CARSON IRRIGATION DISTRICT Michael J. Van Zandt Hanson Bridgett LLP 425 Market Street, 26th Floor San Francisco, CA 94015 (415) 777-3200 [email protected]

U.S. BUREAU OF RECLAMATION Stephen R. Palmer Office of the Solicitor, Dept. of Interior 2800 Cottage Way, Room E-1712 Sacramento, CA 95825 (916) 978-5683 [email protected]

CITY OF FERNLEY Paul G. Taggart Taggart & Taggart, Ltd. 108 North Minnesota Street Carson City, NV 89703 (775) 882-9900 [email protected]

CALIFORNIA DEPARTMENT OF WATER RESOURCES James Mizell 1416 Ninth Street, Room 1118 Sacramento, CA 95814 (916) 653-7533 [email protected]

PYRAMID LAKE PAIUTE TRIBE Don Springmeyer Christopher W. Mixson Wolf, Rifkin, Shapiro, Schulman & Rabkin LLP 3556 E. Russell Road, 2nd Floor Las Vegas, NV 89120 (702) 341-5200 [email protected] [email protected]

CHURCHILL COUNTY Craig Mingay Churchill County District Attorney’s Office 165 N. Ada Street Fallon, NV 89406 (775) 423‐6561 [email protected]

Continued on next page.

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Enclosed Service List - 5 - September 25, 2012 TRUCKEE MEADOWS WATER AUTHORITY Gordon H. DePaoli Woodburn and Wedge 6100 Neil Road, #500 Reno, NV 89511 (775) 688-3000 [email protected] [email protected] [email protected] [email protected]

WASHOE COUNTY WATER CONSERVATION DISTRICT Michael A.T. Pagni P.O. Box 2670 Reno, NV 89505 (775) 788-2020 [email protected]

CITY OF FALLON Michael F. Mackedon P.O. Box 1203 Fallon, NV 89407 (775) 423-2106 [email protected]

LIST OF INTERESTED PERSONS MAKING POLICY STATEMENTS ONLY (PARTIES ARE NOT REQUIRED TO SERVE THE FOLLOWING PERSONS WITH WRITTEN TESTIMONY, EXHIBITS, AND OTHER DOCUMENTS) CALIFORNIA DEPT. OF FISH & GAME Linda Barrera 1416 Ninth Street, 12th Floor Sacramento, CA 95814 (916) 651-7653 [email protected]

STATE OF NEVADA John W. Hoffman 429 West Plumb Lane Reno, NV 89509 (775) 322-4081 [email protected]

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D R A F T September 25, 2012

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STATE OF CALIFORNIA STATE WATER RESOURCES CONTROL BOARD

DECISION XXXX

In the Matter of Applications 31487 and 31488 filed by the United States Bureau of Reclamation,

and Petitions to Change

License 3723 (Application 5169) of Washoe County Water Conservation District, License 4196 (Application 9247) of Truckee Meadows Water Authority, and

Permit 11605 (Application 15673) and License 10180 (Application 18006) of the United States Bureau of Reclamation

Truckee River Watershed

SOURCES: Little Truckee River, Independence Creek, Prosser Creek COUNTIES: Nevada and Sierra

DECISION CONDITIONALLY APPROVING APPLICATIONS 31487 AND 31488 AND

CONDITIONALLY APPROVING PETITIONS TO CHANGE LICENSE 3723 (APPLICATION 5169),

LICENSE 4196 (APPLICATION 9247), PERMIT 11605 (APPLCATION 15673), AND LICENSE 10180 (APPLICATION 18006)

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TABLE OF CONTENTS 1.0  INTRODUCTION ................................................................................................................ 3 2.0  BACKGROUND ................................................................................................................. 4 

2.1  Truckee River Stream System ........................................................................................ 4 2.2  Legal Framework ............................................................................................................ 6 2.3  Truckee River Operating Agreement .............................................................................. 8 2.4  Truckee River Reservoirs ............................................................................................... 9 2.5  Water Right Proceeding ............................................................................................... 12 

2.5.1  Change Petitions and Water Right Applications .................................................... 12 2.5.2  Protests Filed ........................................................................................................ 12 2.5.3  Hearing .................................................................................................................. 12 

3.0  COMPLIANCE WITH THE CALIF0RNIA ENVIRONMENTAL QUALITY ACT ................. 14 4.0  STATE WATER BOARD ACTION IN THIS PROCEEDING ............................................ 15 5.0  PETITIONS TO CHANGE PERMIT 11605 AND LICENSES 3723, 4196, AND 10180 ... 19 

5.1  State Water Board Authority Regarding Petitions for Change ...................................... 19 5.2  Proposed Changes to Permits and Licenses ............................................................... 20 5.3  Issues Raised in Opposition to the Proposed Changes ............................................... 23 

5.3.1  Rights of Downstream Water Users Claiming Injury ............................................. 23 5.3.2  Injury to Other Legal Users of Water ..................................................................... 25 5.3.3  Initiation of a New Right ........................................................................................ 35 

5.4  No Potential Injury to Water Right Holders between Independence and Boca ............ 37 5.5  Approval of the Change Petitions ................................................................................. 39 

5.5.1  Flood Control ......................................................................................................... 39 5.5.2  Coordinated Reservoir Operations and Exchanges .............................................. 40 5.5.3  Operating Term for License 10180 (Prosser Creek Reservoir) ............................. 41 5.5.4  Other Special Terms and Conditions Related to Approval of the Change Petitions 42 

6.0  WATER RIGHT APPLICATIONS 31487 AND 31488 ...................................................... 42 6.1  State Water Board Authority Regarding Water Right Applications ............................... 44 6.2  Water Availability .......................................................................................................... 44 

6.2.1  Overview of Methodology Used ............................................................................ 45 6.2.2  Water Availability Analysis for Application 31487 (Stampede Reservoir) .............. 48 6.2.3  Water Availability Analysis for Application 31488 (Prosser Creek Reservoir) ....... 49 6.2.4  State Filed Applications ......................................................................................... 50 6.2.5  Protestants’ Arguments ......................................................................................... 51 6.2.6  Conclusions Regarding Water Availability ............................................................. 61 

6.3  Beneficial Use and Public Interest ................................................................................ 61 6.4  Redistribution of Storage .............................................................................................. 63 6.5  Terms and Conditions Relating to Approval of the Applications ................................... 63 

7.0  Environmental Effects of the Change Petitions and Water .............................................. 65 Right Applications ....................................................................................................................... 65 8.0  Evidentiary Motions .......................................................................................................... 68 9.0  OTHER Terms and Conditions ........................................................................................ 69 10.0  CONCLUSION ................................................................................................................. 73 

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D R A F T September 25, 2012

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STATE OF CALIFORNIA STATE WATER RESOURCES CONTROL BOARD

DECISION XXXX

In the Matter of Applications 31487 and 31488 filed by the United States Bureau of Reclamation,

and Petitions to Change

License 3723 (Application 5169) of Washoe County Water Conservation District, License 4196 (Application 9247) of Truckee Meadows Water Authority, and

Permit 11605 (Application 15673) and License 10180 (Application 18006) of the United States Bureau of Reclamation

Truckee River Watershed

SOURCES: Little Truckee River, Independence Creek, Prosser Creek COUNTIES: Nevada and Sierra

DECISION CONDITIONALLY APPROVING APPLICATIONS 31487 AND 31488 AND

CONDITIONALLY APPROVING PETITIONS TO CHANGE LICENSE 3723 (APPLICATION 5169),

LICENSE 4196 (APPLICATION 9247), PERMIT 11605 (APPLCATION 15673), AND LICENSE 10180 (APPLICATION 18006)

BY THE BOARD:

1.0 INTRODUCTION

In this decision, the State Water Resources Control Board (State Water Board or Board)

conditionally approves water right Applications 31487 and 31488 of the United States Bureau of

Reclamation (Reclamation or Applicant) to appropriate water from Independence Creek, the

Little Truckee River, and Prosser Creek for beneficial use. The State Water Board also

conditionally approves petitions to change License 3723 (Application 5169) of Washoe County

Water Conservation District (Conservation District), License 4196 (Application 9247) of Truckee

Meadows Water Authority (TMWA), and Permit 11605 (Application 15673) and License 10180

(Application 18006) of Reclamation. The entities filing the change petitions, Conservation

District, TMWA, and Reclamation, are collectively referred to herein as Petitioners. Reclamation

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and the Petitioners filed the two applications and four petitions for change to implement the

Truckee River Operating Agreement (TROA).

2.0 BACKGROUND

2.1 Truckee River Stream System This section provides a general overview of the Truckee River stream system. Specific

facilities, tributary watersheds, and projects relevant to this decision are discussed in later

sections.

The Truckee River flows approximately 120 miles from the outlet of Lake Tahoe in the Sierra

Nevada in California to its terminus at Pyramid Lake, located on the Pyramid Lake Indian

Reservation in the desert plains of Nevada. (Figure 1; USBR-3, pp. 1, 3.) 1 The Truckee River

Basinbasin is a hydrographically closed basin that encompasses approximately 3,060 square

miles. Precipitation amounts in the basin vary widely from the mountainous areas to the desert,

with much of the precipitation in the form of snow. (USBR-3, p. 2.)

Below Lake Tahoe, the Truckee River generally flows north and east, passing through the town

of Truckee, California, until its confluence with the Little Truckee River. The Truckee River

continues to flow in a generally northerly and easterly direction across the California-Nevada

state line, through Truckee Meadows in Nevada, which includes the cities of Reno and Sparks.

Below Truckee Meadows, the Truckee River reaches Derby Diversion Dam (Derby Dam), where

water is diverted into the Truckee Canal to provide irrigation water for the Newlands

Reclamation Project (Newlands Project). After passing Derby Dam, the Truckee River flows

into Pyramid Lake. (Id., pp. 2-3.)

1 Citations to the evidentiary record identify primary support for a particular fact or proposition, but are not intended to identify every piece of supporting evidence in the record. Exhibits are identified by the name or abbreviation for the party submitting the exhibit, the exhibit number, and the page number or other location of the referenced material within the exhibit. The following abbreviations are used when citing to the parties’ exhibits: “USBR” is used for Reclamation; “TMWA” is used for TMWA; “App./Pet. Joint” for Reclamation’s and the other Petitioners’ joint exhibits (filed by Reclamation, TMWA, and the Conservation District); “TCID” is used for TCID and the other protestants; “DWR” is used for the California Department of Water Resources; and “SWRCB” is used for the State Water Board.

Citations to the Certified Shorthand Reporter’s Transcript are indicated by “R.T.” followed by a Roman numeral for the volume of the transcript, followed by the beginning page and line number and the ending line number or page and line number.

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Most of the runoff in the Truckee River basin occurs in California in the Sierra Nevada.

(USBR-7, pp. 1-2.) In California, the Truckee River gains tributary flow from Donner Creek,

Martis Creek, Prosser Creek, and the Little Truckee River, as well as other smaller watersheds.

The Little Truckee River is the largest tributary to the Truckee River in California, providing flow

from approximately 173 square miles within the northwest quadrant of the Truckee River

Basinbasin. Within the Little Truckee River watershed lies Independence Creek, a major

tributary to the Little Truckee River. In summer months, a transbasin diversion carries water

from the Little Truckee River, upstream of its confluence with Independence Creek, through the

Little Truckee Ditch to the Sierra Valley in the Feather River basin. (USBR-3, p. 2; USBR-20, p.

4.)

The Truckee River terminates in Pyramid Lake, where water generally only leaves the lake by

evaporation. (USBR-3, p. 3.) “Due to increased consumptive use of the river’s water supply

over the last one hundred years, as well as the transbasin diversion of water away from the

Truckee River through the Truckee Canal to the Newlands Project, Pyramid Lake’s water

surface elevation has declined greatly at times. The lowest recorded lake elevation occurred in

1967, when the lake was almost 95 feet lower than its highest recorded elevation in 1891.”

(Ibid.)

The Truckee River and its tributaries provide habitat to a variety of native and non-native fish

species. (SWRCB-7, p. 3-181.) Pyramid Lake is home to two fish species, the cui-ui fish and

the Lahontan cutthroat trout, which are listed under the federal Endangered Species Act as

endangered and threatened species, respectively. (USBR-3, p. 3.)

2.2 Legal Framework

The interstate waters of Lake Tahoe and the Truckee River have been the subject of dispute,

controversy, and litigation for well over a century. Water diversion and use on the Truckee

River and its tributaries historically have been governed or influenced by a number of court

decrees, court decisions, agreements, laws, and regulations that we will not attempt to

summarize here. (See USBR–3, pp. 6-9 [summarizing documents governing Truckee River

water storage and flow]; see also State Water Board Decision D-1056 (1962), pp. 5-7

[describing administration of water rights on the Truckee River].) Nonetheless, it is useful to

identify certain decrees and agreements that help form the current governing operational

framework for the Truckee River.

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The Truckee River General Electric Decree, issued in United States of America vs. The Truckee

River General Electric Company in 1915, granted the United States an easement to control the

dam at Lake Tahoe and defined rights to store Truckee River water in, and release it from, Lake

Tahoe. The decree requires certain rates of flow, now known as the “Floriston Rates,” to be

maintained in the Truckee River.2 The Floriston Rates are currently measured at the USGS

streamgage at Farad, California, which is near the California-Nevada state line. (USBR-3, p. 6;

App./Pet. Joint-2.)

The Orr Ditch Decree was entered in United States of America vs. Orr Ditch Water Company, et

al. in 1944, after the United States sought to adjudicate Truckee River water rights in the State

of Nevada. (App./Pet. Joint-7; USBR-3, p. 6.) In addition to adjudicating water rights, the

decree incorporated the 1935 Truckee River Agreement as binding among the parties to that

agreement (including the United States, Truckee Carson Irrigation District (TCID), the

Conservation District, and TMWA’s predecessor, the Sierra Pacific Power Company (SPPC)).

(App./Pet. Joint-6.) The Truckee River Agreement is an operations agreement that provides for

storage of Truckee River waters, among other things. (Id.; USBR-3, p. 6.) In addition, the Orr

Ditch Decree, through the incorporation of the Truckee River Agreement, allows lower rates of

flow, known as “Reduced Floriston Rates,” to be met to conserve water during the period of

November 1 through March 31 of each year.3 (App./Pet. Joint-20, pp. 6-7.)

In 1959 the United States, TCID, the Conservation District, and entered into the Tahoe-Prosser

Exchange Agreement. The agreement provided for the construction of Prosser Creek Dam and

Reservoir and describes the operating procedures for the facility. (App./Pet. Joint-3; USBR-3, p.

77.) It also provides for minimum releases from Lake Tahoe for fishery purposes (streamflow

maintenance) downstream from Tahoe Dam when releases are not necessary to meet Floriston

Rates.4 (App./Pet. Joint-3; USBR-21, p. 5.)

2 The Truckee River General Electric Decree required that the flow in the Truckee River be maintained at a rate of 500 cubic feet per second (cfs) from March 1 through September 30 of each year. From October 1 through the last day in February, the flow requirement was reduced to 400 cfs. (App./Pet. Joint-2; USBR-3, p. 6.) 3 The Reduced Floriston Rates are 350 cfs whenever the surface water elevation of Lake Tahoe is below 6,226.0 feet and not below 6,225.25 feet, and 300 cfs whenever the elevation is below 6.225.25 feet. (App./Pet. Joint-20, pp. 6-7; USBR-7, p. 6, fig. 2; R.T. I, 129:5-8.) 4 “Minimum releases of 70 cfs from April through September and 50 cfs the remainder of the year are maintained at the lake outlet when an equivalent amount of water is available for exchange in Prosser Creek Reservoir. If there is no available storage and inflow to Prosser Creek Reservoir is less than these releases, minimum release from Lake Tahoe is reduced to that of Prosser Creek inflow.” (USBR-21, p. 5.)

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2.3 Truckee River Operating Agreement

In 1990 Congress enacted the Truckee-Carson-Pyramid Lake Water Rights Settlement Act

(Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104 Stat. 3289) (Settlement Act) to provide a

mechanism for resolving the ongoing disputes to the interstate waters. (App./Pet. Joint-16.)

The Settlement Act provides, in part, for Truckee River water supply management,

enhancement and recovery of the Pyramid Lake fishery, protection of wetlands habitat, and an

interstate allocation between California and Nevada of the interstate waters of the Truckee

River, Carson River, and Lake Tahoe.5 (See, e.g., App./Pet. Joint-16, § 202.)

Section 205 of the Settlement Act directs the Secretary of the Interior to negotiate an operating

agreement (known as TROA) for the Truckee River reservoirs with the States of California and

Nevada, after consultation with other designated parties. The interstate allocations under the

Settlement Act and other provisions of the act will not take effect until a number of other

contingencies have been met, including TROA taking effect and settlement of outstanding

litigation and proceedings. (App./Pet. Joint-16, § 210(a).) TROA must provide for the operation

of the Truckee River reservoirs to: (1) satisfy dam safety and flood control requirements; (2)

provide for the enhancement of spawning flows available in the lower Truckee River for the

Pyramid Lake fishery in a manner consistent with the federal Endangered Species Act; (3) carry

out the terms of the Preliminary Settlement Agreement; and (4) ensure that water is stored and

released from Truckee River reservoirs to satisfy the exercise of water rights in conformance

with the Orr Ditch Decree and Truckee River General Electric Decree, except where those rights

have been voluntarily relinquished or have been transferred pursuant to state law. (App./Pet.

Joint-16, § 205(a)(2); see also DWR-01, p. 1 [describing purposes of TROA].)

TROA was signed on September 6, 2008. (App./Pet. Joint-19.) The five mandatory signatory

parties include the States of California and Nevada, the Pyramid Lake Paiute Tribe (Tribe), the

United States (Departments of Justice and Interior) and TMWA. Other agencies and entities

signed TROA as well, including the Conservation District. On December 5, 2008, TROA was

promulgated as the exclusive federal regulation governing the agreement. (App./Pet. Joint-16,

5 Under the interstate allocation, overall water use in the California portion of the Truckee River Basinbasin would be limited to the gross amount of 32,000 acre-feet per year, of which 10,000 acre-feet per year may be from surface water. (App./Pet. Joint-16, § 204(c)(1).) According to the California Department of Water Resources’ witness, Mr. John Sarna, current use in the California portion of the Truckee Basinbasin is well below these limits. (DWR-01, p. 4.)

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§ 205(a)(5); 43 C.F.R. Pt. 419.) TROA requires that certain remaining conditions be met before

it (and the interstate allocations under the Settlement Act) will take effect, including modification

of the Orr Ditch Decree, approval of the water right changes pending before the State Water

Board, and resolution of litigation. (App./Pet. Joint-19, § 12.A.4, pp. 12-3 to 12-5; see also

App./Pet. Joint-16, §§ 205(a)(4), 210(a) [identifying conditions to be met before TROA takes

effect]; R.T. I, 193:18-22.)

2.4 Truckee River Reservoirs

There are seven storage reservoirs tributary to the Truckee River in California: Lake Tahoe,

Donner Lake, Martis Creek Reservoir (flood control only), Prosser Creek Reservoir,

Independence Lake, Stampede Reservoir, and Boca Reservoir.6 (USBR-7, p. 5, Table 1.)

These seven storage reservoirs control approximately 70 percent of the flow in the Truckee

River. (USBR-3, p. 5.) In general, the reservoirs store surface water from the Truckee River in

the spring and release it in the summer and early fall, primarily to meet demands in Nevada.

(SWRCB-7, pp. 3-41 & 3-42.) The change petitions and applications at issue in this hearing

concern Prosser Creek Reservoir, Independence Lake, Stampede Reservoir, and Boca

Reservoir, described below.

Prosser Creek Reservoir (License 10180 (Application 18006))

Water is diverted from Prosser Creek, which is tributary to the Truckee River, to Prosser Creek

Reservoir in Nevada County, California. (USBR-1, p. 3.) Prosser Creek Dam is owned and

operated by Reclamation. (USBR-7, p. 5, Table 1.) The dam is a 163-foot high zoned earthfill

dam with a usable storage capacity of 29,800 acre-feet (af) at the spillway crest. (USBR-7, p. 5,

Table 1; p. 24.) The primary function of Prosser Creek Reservoir is to provide flood control

protection and to store Tahoe-Prosser Exchange Water. (App./Pet. Joint-20, p. 5.)

License 10180 is held by Reclamation. The license allows for storage of 30,000 af per annum

(afa), to be collected from April 10 to August 10 of each year. The maximum withdrawal in any

one year shall not exceed 20,162 af. The place of use includes 82,000 net acres within 143,480

gross acres all within the Truckee Meadows and Newlands Project areas and Prosser Creek

Reservoir. The purposes of use include irrigation, domestic, municipal, industrial, fish culture,

and recreation. (SWRCB-4.) Between November 1 of each year and April 10 of the following

6 In addition, a privately owned reservoir, Webber Lake, is located upstream of Stampede Dam on the Little Truckee River. (USBR-7, p. 4; TCID-287, p. 12.)

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year, reservoir storage is lowered to 9,800 af to provide 20,000 af for flood control. (SWRCB-7,

p. 3-43.) With a priority date of 1958, License 10180 has the most junior storage priority in the

Truckee River Basinbasin. (USBR-21, pp. 2, 5.)

Independence Lake (License 4196 (Application 9247))

Water is diverted to Independence Lake in Nevada and Sierra Counties, California, from

Independence Creek, which is tributary to the Little Truckee River thence the Truckee River.

(USBR-1, p. 2.) Independence Lake, which is owned and operated by TMWA, has a 31-foot

high earthfill dam, providing a usable storage capacity of 17,500 af. (USBR-3, p. 5; USBR-7, p.

5, Table 1.) Independence Lake was a reservoir when the Orr Ditch Decree was entered, but

the decree did not adjudicate the water right for the reservoir. (App./Pet. Joint-20, p. 4.)

License 4196, which is held by TMWA, allows for storage of 17,500 afa to be collected from

about December 1 of each year to about July 1 of the following year for municipal purposes.

The license has a 1938 priority. The place of use includes portions of the City of Reno and the

City of Sparks, Nevada. (USBR-1, p. 2.) Between November 1 and April 1, reservoir storage

usually ranges from 13,000 to 15,000 af for dam safety reasons. (SWRCB-7, p. 3-43.)

Stampede Reservoir (Permit 11605 (Application 15673))

Water is diverted from the Little Truckee River, which is tributary to the Truckee River, to

Stampede Reservoir in Sierra County, California. (USBR-1, p. 3.) Stampede Dam, which is

owned and operated by Reclamation, is a 239-foot high zoned earthfill dam with a usable

storage capacity of 226,500 af. (USBR-7, p. 4, and Table 1, p. 5.) There is a small hydropower

generation plant at Stampede Dam with a generation capacity of 3.6 megawatts. (USBR-3, p.

6.) Permit 18320, which is not at issue in this proceeding, provides for power generation.

Permit 11605, which has a priority date of 1954, is held by Reclamation. The permit allows for

the direct diversion of 350 cubic feet per second (cfs) from about April 1 to about November 1 of

each year and for 126,000 af to storage from January 1 to December 31 of each year. The

existing purposes of use are irrigation, domestic, municipal, industrial, flood control, fish culture,

and recreation. The place of use includes 26,800 net acres within 36,340 gross acres within

Truckee Meadows and 70,000 net acres within 107,140 gross acres within the Newlands

Project. (USBR-1, p. 3; SWRCB-3.) The primary use of Stampede Reservoir is for flood control

and storage of water dedicated to the threatened and endangered Pyramid Lake fish species.

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(App./Pet. Joint-20, p. 6; USBR-3, p. 7; App./Pet. Joint-137.) Approximately 22,000 af is

reserved for storage between November 1 and April 10 for flood control. (SWRCB-7, p. 3-43.)

In 1994 the United States, Tribe, Conservation District and Sierra Pacific Power Company

(TMWA’s predecessor) entered into an Interim Storage Agreement to store privately owned

water in Stampede and Boca Reservoirs. (USBR-3, p. 7; TMWA 1-4.) The agreement “sets

forth rules for the establishment, storage, and exchange of privately owned (non-project) water

within the reservoirs.” (USBR-3, p. 7.)

Boca Reservoir (License 3723 (Application 5169))

Water is diverted to Boca Reservoir in Nevada County, California, from the Little Truckee River,

which is tributary to the Truckee River. Boca Dam is a 116-foot earthfill dam with a usable

storage capacity of 41,100 af, which is owned by Reclamation and operated under contract by

the Conservation District. (USBR-1, p. 2; USBR-7, p. 5, Table 1.)

License 3723, which has a priority date of 1926, is held by the Conservation District.8 The

license allows for storage of 40,850 afa collected from about October 1 of each year to about

July 1 of the succeeding year. The purposes of use are irrigation of a net area of 30,000 acres

and domestic use all within the boundaries of the Conservation District in Nevada. The

maximum area irrigated in any one year shall not exceed 29,000 acres. The primary function of

Boca Reservoir is to provide flood control protection and storage of Floriston Rate Water.

(App./Pet. Joint-20, p. 5.) Flood control storage of 8,000 af is reserved in the reservoir from

November 1 to April 10 of the following year. (SWRCB-7, p. 3-43.)

7 In Carson-Truckee Water Conservancy District v. Watt, 549 F.Supp. 704 (D. Nev. 1983), affirmed in relevant part in (9th Cir. 1984) 741 F.2d 257, the federal district court concluded that the federal Endangered Species Act requires the Secretary of the Interior to give the Pyramid Lake fishery priority over all other purposes of Stampede Reservoir until the cui-ui and Lahontan cutthroat trout are no longer classified as endangered or threatened. (App./Pet. Joint-13; App./Pet. Joint-14.) 8 Under the Truckee River Agreement, to which TCID also is a party, the Conservation District may store 25,000 af of Truckee Canal Water—the 1500 cfs decreed to the United States for diversion into the Truckee Canal--in Boca Reservoir subject to certain conditions. In practical effect, this allows the first 25,000 af of storage in Boca Reservoir to be stored ahead of Newlands Project water rights that are established under Claim No. 3 of the Orr Ditch Decree (described below), with the rest of the water in Boca Reservoir (up to the reservoir’s capacity of 40,870 af) stored junior to Claim No. 3. (App./Pet. Joint-6; App./Pet. Joint-20, p. 8.)

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2.5 Water Right Proceeding

2.5.1 Change Petitions and Water Right Applications

In December 2003, Reclamation, the Conservation District, and TMWA filed four separate

petitions to change their respective permit and licenses for Independence Lake, Stampede

Reservoir, Boca Reservoir, and Prosser Creek Reservoir. In general, the change petitions seek

to include common points of diversion, points of rediversion, places of use, and purposes of use

so that water can be exchanged, stored, and diverted, to implement TROA. The change

petitions were revised in 2005. (USBR-1, pp. 1-4; USBR–13.)

On January 8, 2004, Reclamation filed two water right applications. Under Application 31487,

Reclamation seeks to divert water and store water from Independence Creek and the Little

Truckee River in the existing Independence Lake, and Stampede and Boca Reservoirs. It filed

Application 31488 to divert and store water from Prosser Creek in the existing Prosser Creek

Reservoir. All sources are tributary to the Truckee River. (SWRCB-5, -6; USBR-1, pp. 4-5.)

The change petitions and applications are described in detail below.

2.5.2 Protests Filed

The State Water Board provided notice of the four change petitions and two applications on

January 30, 2007. On April 2, 2007, protests to each of the four change petitions and two

applications were filed jointly by TCID; Churchill County, Nevada; Newlands Project individual

water right owners (Ernest C. Schank, Richard Harriman, Ray Peterson, Don Travis, Jerry

Blodgett, Lester deBraga, and Larry Miller); and the City of Fallon, Nevada (collectively,

“Protestants”). TCID claims a contractual responsibility to operate and maintain the Newlands

Project and to deliver water to the water right owners, including the other co-protestants. The

protests were based on injury to prior rights, injury to the public interest, injury to the public trust,

and environmental grounds.

2.5.3 Hearing

On April 19, 2010, the State Water Board issued a Notice of Public Hearing on the change

petitions and applications that identified the following key hearing issues:

“1. Petitions to Change Permit 11605 and Licenses 3723, 4196, and 10180

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a. Should the State Water Board approve the petitions to change Permit

11605, and Licenses 3723, 4196, and 10180?

i. Will the proposed changes injure any legal user of water? If the

State Water Board approves the changes, what conditions, if any, should

the board adopt to avoid any injury?

ii. Will the proposed changes in effect initiate a new water right?

iii. Will the proposed changes result in any significant adverse

impacts to water quality, the environment, or public trust resources? If so,

what conditions, if any, should the State Water Board adopt to avoid or

mitigate any such potential adverse impacts?

iv. If the State Water Board approves the changes, what conditions,

if any, should the board adopt to meet the requirements of the Truckee

River Operating Agreement?”

“2. Water Right Applications 31487 and 31488

a. Should the State Water Board approve either water right Application

31487 or Application 31488, or both?

i. Is water available for appropriation under each of the

applications? If so, when is water available and under what

circumstances, taking into consideration prior rights? What conditions, if

any, should the State Water Board adopt to protect prior rights?

ii. Will the water be put to beneficial use and are each of the

proposed appropriations in the public interest? If the State Water Board

approves the applications, what conditions, if any, should the board adopt

to ensure that the diversions are in accordance with applicable law and

best serve the public interest?

iii. Will approval of the applications result in any significant adverse

impacts to water quality, the environment, or public trust resources? What

conditions, if any, should the State Water Board adopt to avoid or mitigate

any such potential adverse impacts?

iv. If the State Water Board approves the applications, what

conditions, if any, should the board adopt to meet the requirements of the

Truckee River Operating Agreement?”

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A pre-hearing status conference to discuss the scope of the hearing, the status of the protests,

and other procedural issues was held on May 27, 2010. Reclamation, the California

Department of Water Resources (DWR), TMWA, the Conservation District, TCID, Churchill

County, the City of Fallon, the City of Fernley, and the Tribe filed Notices of Intent to Appear as

participants in the hearing. The State Water Board held the water right hearing on

July 21, 22, 23, 28, and 29, 2010. Reclamation, TMWA, and the Conservation District

presented a joint case-in-chief as Applicant and Petitioners, and also their own individual cases-

in-chief. DWR, TCID, the City of Fernley, and Churchill County also presented cases-in-chief.

The Tribe, the State of Nevada, the California Department of Fish and Game, and DWR

presented policy statements. The United States Department of Interior, through Reclamation,

the Conservation District, TMWA, DWR, the Tribe, and the City of Fernley submitted a joint

closing brief (hereinafter “Joint Closing Brief”). TCID, Churchill County, and the City of Fallon

also filed a joint closing brief (hereinafter “TCID Closing Brief”).

3.0 COMPLIANCE WITH THE CALIF0RNIA ENVIRONMENTAL QUALITY ACT

In January 2008, pursuant to the National Environmental Policy Act (NEPA) and the California

Environmental Quality Act (CEQA), the U.S. Department of the Interior and DWR jointly issued

a final Environmental Impact Statement/Environmental Impact Report (EIS/EIR) evaluating the

proposed TROA. The proposed action included the implementation of TROA, the water right

applications filed by Reclamation, and Petitioners’ proposed changes to the California water

right permit and licenses to allow the water storage, transfers, and exchanges provided for in

the proposed TROA. On September 5, 2008, the Secretary of the Interior signed the Record of

Decision for the proposed TROA and the California Resources Agency certified the final

EIS/EIR. (App./Pet. Joint-17; DWR - 05.) The final EIS/EIR does not identify any significant

adverse effects that require mitigation. (SWRCB-7, pp. ES-13, 3-457 to 3-469; R.T. II, 388:2-5.)

The State Water Board is a responsible agency under CEQA for purposes of considering

whether to approve the change petitions and applications. As a responsible agency, the State

Water Board must review and consider the environmental effects of the project identified in the

EIS/EIR, and any other relevant evidence in the hearing record, and reach its own conclusions

on whether and how to approve the project involved. (Cal. Code Regs., tit. 14, § 15096, subd.

(a).) The State Water Board is responsible for mitigating or avoiding only the significant

environmental effects of those parts of the project that it decides to approve. (Cal. Code Regs.,

tit. 14, § 15096, subd. (g).)

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TCID argues that flaws in the Truckee River Operations Model used to support the draft and

final EIS/EIRs call into “serious question the fundamental underpinning of the EIS/EIR,” and

urges the State Water Board to reject the model, in its present form, for use as the foundation

for the EIS/EIR. (TCID-275B, at p. 3.)9 In general, however, a responsible agency must

presume that the EIR complies with CEQA. CEQA Guidelines section 15231 requires a

responsible agency that was consulted by the lead agency in preparing the EIR to conclusively

presume that an EIR is adequate unless (1) the EIR is finally adjudicated in a legal proceeding

to be inadequate, or (2) a subsequent EIR is necessary pursuant to section 15162. (Cal. Code

Regs., tit. 14, § 15231; see Pub. Resources Code, § 21167.2.) The EIR has not been adjudged

to be inadequate and no circumstances exist to require a subsequent EIR. (R.T. II, 583:2-14;

DWR-01, p. 10.) Therefore, the State Water Board is required to presume that the EIR is

adequate.

The State Water Board has considered the environmental effects of the project as shown in the

EIS/EIR. Based on a review of the EIS/EIR and the information in the hearing record, no

findings or mitigation are required under CEQA. Nonetheless, regardless of any obligation the

State Water Board may have under CEQA, the State Water Board has an independent

obligation to consider the effect of the proposed project for purposes of meeting the State Water

Board’s public trust and public interest responsibilities. (See generally Wat. Code, § 1253;

National Audubon Society v. Superior Court (1983) 33 Cal.3d 419.)

4.0 STATE WATER BOARD ACTION IN THIS PROCEEDING

Protestants assert that it is in the interest of judicial and administrative economy for the State

Water Board to defer action on the pending applications and petitions until TROA is approved

by the Orr Ditch Court and the Orr Ditch Decree is modified. They state that the State Water

Board cannot take any action that deprives the decree court of its exclusive and continuing

jurisdiction over the decreed rights or violates the decree, including incorporation of the Truckee

River Agreement and the Floriston Rate management structure into the decree. Because the

Orr Ditch Decree must be modified before TROA takes effect, Protestants allege that the State

Water Board cannot properly evaluate the effect of the proposed changes on existing water

rights until the decree court renders a decision.

9 TCID-275B does not have page numbers; the pages cited here refer to the .PDF format page numbering.

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The State Water Board will not defer action on the pending applications and petitions for the

following reasons. The State Water Board’s exercise of its adjudicatory functions under state

law does not deprive the Orr Ditch Decree Court of its exclusive jurisdiction or violate the Orr

Ditch Decree. The State Water Board exercises the adjudicatory and regulatory functions of the

State of California in the field of water resources. (Wat. Code, § 174.) Under the California

Water Code, the State Water Board has exclusive primary jurisdiction over the pending

applications and petitions in this proceeding. (See id., § 1225.)

Protestants cite Water Code section 2900 and California case law for the proposition that, under

California’s system for the adjudication of water rights, the court reserves jurisdiction to modify a

decree. A court’s reservation of jurisdiction in an adjudication decree, however, does not divest

the State Water Board of its administrative authority over water rights subject to the decree.

(See, e.g., Wat. Code, §§ 2819 [authority to act on change petitions for water rights subject to a

statutory stream system adjudication], 2820 [revocations].)10 In addition to its authority to

administer water right permits and licenses, the State Water Board has continuing authority

under the public trust and reasonableness doctrine over water rights in an adjudicated stream

system. (See, id., § 275 [proceedings to prevent waste and unreasonable use]; Imperial

Irrigation Dist. v. State Water Resources Control Bd. (1986) 186 Cal.App.3d 1160 [upholding

State Water Board authority in administrative proceeding concerning waste and unreasonable

use of waters subject to a federal court adjudication]. See also In re Water of Hallett Creek

Stream System (1988) 44 Cal.3d 448, 472 & fn. 16 [recognizing State Water Board authority to

apply public trust and reasonable use requirements to riparian rights].) Moreover, the Orr Ditch

Decree did not seek to comprehensively determine the rights of all water right holders in the

California portion of the Truckee River watershed; the decree does not include a determination

of any of the water rights perfected or being developed under authority of a water right permit or

license issued by the State Water Board.

The purpose of the requested changes and applications is to implement TROA, which in turn

would result in an altered operational regime on the Truckee River and its tributaries. Citing to

Decisions 1131 (1963) and 1132 (1963) of the State Water Board’s predecessor, Protestants

10 Like section 2900 of the Water Code, on which Protestants rely, sections 2819 and 2820 apply to statutory stream system adjudications conducted under chapter 3 (commencing with section 2500) of part 3 of division 2 of the Water Code. The Orr Ditch Decree was not issued pursuant to these provisions. But these provisions serve to illustrate the point that an adjudication does not deprive the State Water Board of its adjudicatory authority over the water rights subject to the adjudication decree.

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contend that when there is a private agreement between parties to a proceeding before the

State Water Board, such as the Truckee River Agreement or the Tahoe-Prosser Exchange

Agreement, the “respective rights and obligations” of the parties are not within the board’s

jurisdiction, and that the board should conform any approval subject to the private agreement.

(TCID Closing Brief, pp. 31, 35-36.) Protestants note that the Truckee River Agreement led to

the resolution of competing applications to certain Truckee River reservoirs, including Boca

Reservoir, which were addressed by the State Water Board’s predecessor in Decision 435

(1938) and Decision 1056. (See, e.g., TCID-282, pp. 8-10 [discussing proceedings leading to

Decision 435].) Thus, Protestants want the Orr Ditch Court to address the issue of TROA

superseding these agreements before the State Water Board acts.

We conclude that it is appropriate for the State Water Board to act on the pending applications

and petitions filed under state law, focusing on the issues raised under our state law obligations.

The Orr Ditch Court has continuing jurisdiction over the Orr Ditch Decree, including the Truckee

River Agreement. To enter into effect, TROA must be submitted to the Orr Ditch Court and the

Truckee River General Electric Court for approval of any necessary modifications to the

respective decrees.11 (App./Pet. Joint-16, § 205(a)(4).) The State Water Board is not being

asked to amend any decree or agreement; instead our purview is limited to the requested

changes pending before us, generally relating to changes in points of diversion, places of use,

and purposes of use. Thus, contrary to Protestants’ suggestion, it is unnecessary to defer our

action pending the outcome of proceedings before the Orr Ditch Court. Instead, the better

approach is to consider the applications and petitions pursuant to California law, but to condition

any approval upon TROA taking effect (as the Applicant and Petitioners request), which will not

occur before Orr Ditch Court approves any necessary modifications to the decree. Further, the

State Water Board’s consideration of the pending requests will serve to inform the Orr Ditch

Court’s determination, at least with respect to the issues raised under California law.

Moreover, Protestants misconstrue the water right decisions they cite. We agree that as a

general proposition the State Water Board does not oversee private agreements between

private parties and that it will not adjudicate the “respective rights and obligations” as between

the parties to such agreements. (But see Decision 1131 at p. 4 [interpreting a private

agreement in a manner different from its literal language, so as to conform the agreement to

11 The Truckee River General Electric Court has amended the decree to allow Prosser Creek Reservoir to be operated in accordance with TROA. (R.T. IV, 884:20-885:8.)

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applicable water right constraints].) But a private agreement cannot deprive the State Water

Board of its statutory responsibility for water right administration, including the authority to act on

water right applications and petitions. (See, e.g., Wat. Code, § 1250 [State Water Board “shall

do all things required or proper” relating to applications].) Nor can the State Water Board rely

on third party agreements to fulfill its independent obligations. (Central Delta Water Agency v.

State Water Resources Control Board (Central Delta) (2004) 124 Cal.App.4th 245, 265; see,

e.g, State Water Board Order WR 2008-0014, p. 19 [declining to rely on a third party agreement

for the enforcement of conditions “when the State Water Board has clear authority and an

obligation to ensure that those conditions are met”].) Thus, while the State Water Board

recognizes the potential value of negotiated agreements related to water right proceedings, and

may incorporate terms of such agreements as part of its approvals, it must satisfy its

independent duty to make any required findings and place appropriate conditions in the water

rights pending before it.

Protestants also suggest that the State Water Board cannot condition approval of the

applications and petitions on the Orr Ditch Court’s approval of TROA because the board does

not know how the decree will be modified or TROA will be affected. They cite Central Delta

Water Agency v. State Water Resources Control Bd., supra, to support their position that the

State Water Board cannot conditionally approve the applications and permits. In Central Delta,

the appellate court held that the State Water Board, after a hearing, could not defer making

findings that were prerequisite to issuing water right permits by delegating the remaining

findings to its staff for subsequent determinations by the staff. Central Delta is inapposite. In

this decision, the State Water Board makes the legally required findings that are necessary to

approve the applications and petitions. It does not impermissibly delegate any necessary

findings to staff or another entity. The State Water Board merely makes its approval subject to

a condition subsequent. (See, e.g., Order WR 2000-13 at pp. 40-41.)

In addition, Protestants assert, it is premature for the State Water Board to act until Petitioners

have obtained the necessary approvals under Nevada law to store water in the upstream

Truckee River reservoirs or other issues related to Nevada water right applications have been

resolved. As discussed herein, the Applicant and Petitioners have satisfied the procedural and

substantive requirements under California law for obtaining approval of the applications and

change petitions. Nothing in California law prohibits the State Water Board from acting until all

other necessary approvals are obtained.

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We recognize that the interstate nature of the Truckee River stream system and the complex

legal framework governing the diversion and use of water from that stream system present

unique considerations in this proceeding. We wish to emphasize that our action in this

proceeding exclusively concerns the exercise of the State Water Board’s functions under

California law—namely, whether to approve the pending applications and petitions.

5.0 PETITIONS TO CHANGE PERMIT 11605 AND LICENSES 3723, 4196, AND 10180

5.1 State Water Board Authority Regarding Petitions for Change Water Code sections 1700 through 1705 govern changes in the place of use, purpose of use, or

point of diversion, of an appropriative water right acquired under division 2 of the Water Code.

A change cannot be made without the approval of the State Water Board. Before the State

Water Board may approve a change, “the petitioner shall establish, to the satisfaction of the

board, and it shall find, that the change will not operate to the injury of any legal user of the

water involved.” (Wat. Code, § 1702.) The petitioner also must establish that the proposed

change will not effectively initiate a new right. (Cal. Code Regs., tit. 23, § 791, subd. (a).)

Any interested person may file a protest against the petition on the basis that the proposed

change would injure a legal user of water, interfere with a prior right, is not within the State

Water Board’s jurisdiction, would not best conserve the public interest or public trust, would

have an adverse environmental impact or would be contrary to law. (Wat. Code, §§ 1703.2,

1703.6, subds. (c) & (d); Cal. Code Regs., tit. 23, §§ 745, subds. (b) & (c), 796.) The State

Water Board may approve the petition if the board finds that the change will not injure any legal

user of water or unreasonably affect fish, wildlife, or other instream beneficial uses.12

12 “Water Code section 1702 does not expressly require a finding that the change will not unreasonably affect fish, wildlife, or other instream beneficial uses, but the statutory provisions governing change petitions support the conclusion that the [State Water] Board must consider the potential impacts to fish, wildlife, or other instream beneficial uses in determining whether and under what conditions to approve such a change petition.” (Order WR 2009-0033, p. 6, fn. 4; see, e.g., Wat. Code, §§ 1701.2, subd. (c), 1703; see also, Cal. Code Reg., tit. 23, §§ 794, subd. (a)(8), (b)-(d), 795, subd. (a) [establishing notice requirements relating to the potential effects of the proposed change on water quality, fish, wildlife, and other instream beneficial uses].)

“Moreover, consideration of potential impacts to fish and wildlife is consistent with the State Water Board’s continuing duty to consider the impacts of water diversions on public trust resources, including fish and wildlife habitat.” (Order WR 2009-0033, p. 6, fn. 4, citing National Audubon Society v. Superior Court (1983), supra, 33 Cal.3d at 434-435, 445-447.) Similarly, the fact that Water Code section 1702 does not expressly require a finding that a change will be in the public interest does not preclude the Board from taking public interest considerations into account. (See State Water Board Order WR 95-9, p. 29; State Water Board Revised Decision 1641 (2000) pp. 117, 129 [reasoning that when reviewing a proposed change to a permit or license, the Board should consider the same factors that were considered when reviewing the underlying water right application, and therefore the Board should consider the public interest and effects on fish and wildlife].)” (Order WR 2009-0033, p. 6, fn. 4.)

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5.2 Proposed Changes to Permits and Licenses The petitions for change request the addition of points of diversion and rediversion and changes

to the place and purposes of use, to facilitate coordinated operations under TROA. These

changes include: (1) the addition of common points of diversion among Independence Lake,

Stampede Reservoir, and Boca Reservoir; (2) the redistribution13 of storage among the same

three reservoirs;14 (3) the addition of common points of rediversion;15 (4) enlargement of the

place of use to provide for a common place of use under the licenses and permit; and (5) the

addition of purposes of use so that the licenses and permit have the same purposes of use.

(USBR–1, pp. 1-2; R.T. I, 55:21-56:23.)

In addition, Petitioners request that the following term be eliminated in License 10180 (Prosser

Creek Reservoir):

The Licensee shall operate Prosser Creek Reservoir in coordination with releases of water from Lake Tahoe in the Truckee River in accordance with the operation schedule contained in the U.S. Bureau of Reclamation, Prosser Creek Reservoir Operation Study, January 14, 1958, and amended July 1, 1958, on file with the [State Water] Board, or in accordance with any modified operation schedule that may be submitted by the Licensee, and approved by the [State Water Board] after notice and opportunity to be heard has been given to all parties and other interested persons in this proceeding.

(USBR-1, p. 4.)

13 According to Reclamation, “[r]edistribution as used in the change petitions means that a quantity of water, which would have been or is physically stored in a reservoir under this license (permit) may be stored in another reservoir under this license (permit).” (USBR–1, p. 1, fn. 1.) 14 For example, under the proposed changes to License 4196, water initially stored in Independence Lake may be withdrawn and restored in Stampede or Boca Reservoirs for potential later municipal use by TMWA. (TMWA 3-0, p. 11.) Changes to Permit 11605 (Stampede Reservoir) will allow the storage of water in Independence Lake and the storage and restorage of water in Boca Reservoir. (TMWA 3-0, p. 12.) Changes to License 3723 (Boca Reservoir) will allow the storage of water and redistribution of storage to Independence Lake and to Stampede Reservoir. (TMWA 3-0, p. 13.) 15 Unlike the other change petitions, the change petition for License 10180 (Prosser Creek Reservoir) does not seek to add points of diversion and redistribution of storage. (TMWA 3-0, p. 13.) In addition, Independence Lake is not a point of rediversion in any permit or license.

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Petitioners request that the following term be included instead:

The Licensee shall operate Prosser Creek Reservoir in accordance with the Truckee River Operating Agreement, which is on file with the State Water Resources Control Board.

(USBR-1, pp. 3-4.)

In addition, because implementation of the proposed changes is predicated on the approval and

implementation of TROA, Petitioners have requested that any State Water Board order

approving the change petitions include the following conditions:

These changes are not effective until the conditions required for the Truckee River Operating Agreement to enter into effect have been satisfied. All diversions, storage, use of water and operations under this [License/Permit] shall be in accordance with the provisions contained in this [License/Permit] and the Truckee River Operating Agreement. Water stored in this [Name of Reservoir] pursuant to permits issued by the Nevada State Engineer under Nevada Law, and recognized pursuant to the provisions of California Water Code Sections 1231 and 1232 shall not be considered as water stored pursuant to the provisions of this [License/Permit].

(USBR-1, p. 4.)

The proposed changes in the points of diversion and points of rediversion, places of use, and

purposes of use are described in more detail below. All of the existing points of diversion and

points of rediversion, places of use, and purposes of use under the permit and licenses will be

retained. (USBR–1, p. 2.)

Proposed Common Points of Rediversion

The proposed common points of rediversion under License 3723, License 4196, License 10180,

and Permit 11605 are described in Table A of this decision.

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Proposed Common Expanded Place of Use

The proposed expanded place of use is shown on Map No. 320-208-189A-1,116, which is on file

at the State Water Board in Sacramento, California. The following list provides the proposed

expanded place of use in all four change petitions, including the existing place of use of License

3723 (Boca), License 4196 (Independence), License 10180 (Prosser), and Permit 11605

(Stampede).

Township* Range*

13N 17 & 18E

14N 16 – 18E

15N 16 – 18E

16N 16 – 18E

17N 15 – 20E, 24 – 31E

18N 14 – 21E, 24 – 31E

19N 14 – 31E

20N 18 – 32E

21N 18 – 26E, 29 – 32E

22N 20 – 24E

23N 20 – 24E

24N 20 – 24E

25N 20 – 24E

26N 20 – 24E

27N 20 – 24E

28N 23 & 24E

* All references to township and range are to Mount Diablo Base and Meridian (MDB&M)

16 This map was originally dated July 24, 2006, and has been revised several times since then. This decision refers to the version most recently revised on 8/27/12.

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Proposed Common Purposes of Use

Reclamation requests that the purposes of use be expanded to include the following to facilitate

possible changes and exchanges permitted under TROA:

Common Purposes of Use for Licenses, Permit, and Applications

Municipal

Domestic

Industrial

Irrigation

Stockwatering

Fish Culture

Fish & Wildlife Protection/Enhancement (including wetlands)

Power (incidental)

Instream Water Quality Enhancement

Recreation

Conservation of Pyramid Lake fishery (as provided in P.L. 101-618)

Flood Control (except for Independence Reservoir, L4196)

Power Use

Incidental Power use will be at the power plants described in Table C of this decision.

5.3 Issues Raised in Opposition to the Proposed Changes In general, Protestants contend that the proposed changes will injure the rights of the Newlands

Project and existing water users and effectively initiate a new right. They assert that Petitioners

have failed to demonstrate that no injury will result from approval of the proposed changes and

that the impacts analysis is deficient.

5.3.1 Rights of Downstream Water Users Claiming Injury

At the hearing, Protestants alleged that Petitioners have failed to establish that the proposed

changes will not operate to the injury of any legal user of water. Specifically, Protestants allege

that the proposed changes will cause injury to their water rights, which derive from Claim Nos. 3

and 4 of the Orr Ditch Decree. Claim No. 3 grants the United States the right to divert 1,500 cfs

of water flowing in the Truckee River through the Truckee Canal “for the irrigation of 232,800

acres of land on the Newlands Project, for storage in the Lahontan Reservoir, for generating

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power, for supplying the inhabitants of cities and towns on the project and for domestic and

other purposes . . . .” (App./Pet. Joint-7, p 10.) With a priority date of July 2, 1902, Claim No. 3

is junior to approximately 95 percent of the other claims under the Orr Ditch Decree.1617

(USBR-3, p. 8; R.T. I, 115:8-11.)

Under Water Code section 1702, before the State Water Board can grant permission to make a

change in an appropriative water right, it must find that the change will not operate to the injury

of any legal user of the water involved. A “legal user of the water involved” is not limited to a

person who holds an appropriative water right, but encompasses any person who legally uses

the water involved. (See, e.g., State Water Resources Control Bd. Cases (2006) 136

Cal.App.4th 674, 804 [finding that a legal user of water includes a person who uses the water

under a contract with the appropriator who seeks the change].) Thus, the controlling

consideration in the State Water Board’s inquiry is the effect of the change on the rights of

others. (Id., at pp. 743, 805.) A person who claims that a proposed change will cause injury

“must show the change will interfere with his or her right to use the water, whatever the source

of that right may be.” (Id. at p. 805.) It is not enough for a person to show that he or she will

receive less water as a result of the change. A person claiming injury must demonstrate that he

or she has a right to the greater amount of water claimed and that the proposed change will

interfere with that right. (Ibid.)

The water right owners represented by TCID have a legal interest in the waters of the Truckee

River pursuant to Claim No. 3 of the Orr Ditch Decree. TCID is responsible for the operation

and management of the Newlands Project, including the management of the Claim No. 3 water

for the benefit of the project in accordance with the Operating Criteria and Procedures (OCAP)

(discussed below). (TCID-281, p. 2; R.T. II, 482:13-22; see Truckee-Carson Irrigation District v.

Secretary of Interior (1984) 742 F.2d 527, 531 [noting that TCID’s rights to the flow of the

Truckee River were strictly managerial].) Nearly all of the water rights in the Newlands Project

1617 Under Claim No. 4 of the Orr Ditch Decree, the United States also has the right to store water in Lake Tahoe and to discharge sufficient water to deliver 1,500 cfs, after transportation loss, to the head of the Truckee Canal at Derby Dam to be subsequently diverted for irrigation, storage in Lahontan Reservoir, and other purposes. (App./Pet. Joint-7, p. 11.) The testimony in the hearing, however, primarily focused on Claim No. 3, and for ease of reference, we refer herein to Claim No. 3.

Additionally, in written testimony, TCID’s witness described rights granted under the final decree in United States of America v. Alpine Land & Reservoir Co., et al. (D.Nev. 1980), Civ. No. D-183, (Alpine Decree), entered on October 28, 1980, which also serves the Newlands Project. The Alpine Decree adjudicates water rights on the Carson River and its tributaries. (TCID-134.) The Carson River and rights arising under the Alpine Decree are not at issue in this proceeding.

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are owned by the individual land owners. (R.T. III, 733:1-17.) The United States Supreme

Court has determined that the Newlands Project landowners have a beneficial interest in the

water rights held by Reclamation for the benefit of the Project. “The beneficial interest in the

rights confirmed to the Government resided in the owners of the land within the Project to which

these water rights became appurtenant upon the application of Project water to the land.”

(Nevada v. United States (1983) 463 U.S. 110, 126.) It is not enough, however, for Protestants

to show that they have a right to the water involved, but they must also show that the proposed

changes will interfere with that right. As explained below, Protestants have not met that burden.

5.3.2 Injury to Other Legal Users of Water

Protestants argue that the Petitioners failed to meet their burden under Water Code section

1702 because they did not conduct an independent analysis of injury to other water users.

Protestants note that the purpose of the proposed changes is to implement TROA and, thus, the

State Water Board must look at the operation of the proposed changes, which includes the

changes proposed on the face of the petitions, and also the water exchanges, trades, releases,

and carryover storage anticipated by TROA. (TCID briefClosing Brief, p. 8.) Protestants also

contend that the Petitioners’ injury analysis failed to consider operation of TMWA’s change

applications filed in Nevada, which purport to store water in the California upstream reservoirs.

In sum, Protestants allege that the Petitioners did not conduct an adequate injury analysis

because they did not consider the operation of TROA and TMWA’s water rights.

5.3.2.1 ADEQUACY OF INJURY ANALYSIS

Petitioners must provide sufficient information to demonstrate a reasonable likelihood that the

proposed change will not injure any other legal user of water. (Wat. Code, § 1701.2, subd. (d).)

As explained by the federal Chief Deputy Water Master, Mr. Chad Blanchard, the storage of

new water in Truckee River Basinbasin reservoirs is on a priority schedule. (App./Pet. Joint-20,

p. 8; R.T. I, 125:11-126:22.) The priorities of storage under the permit and licenses for

Independence Lake, Stampede Reservoir, Boca Reservoir (with the exception of the first 25,000

af of storage in the reservoir), and Prosser Creek Reservoir are all junior to Claim No. 3. (See

App./Pet. Joint-20, p. 8 [explaining that Truckee Canal demands and other conditions must be

met before new storage may occur in the reservoirs].) Thus, according to Petitioners, the

proposed changes will not result in injury because the water involved in the changes is water

previously stored under those junior rights. Previously stored water is only available for use by

the water right holder and is not available for other users downstream. Downstream users have

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no legal interest in the water and therefore cannot be injured by the proposed changes. (R.T. I,

227:22-228:10.) Moreover, the water subject to the proposed changes will remain with the

quantities and seasons of the existing licenses and permit. (TMWA 3-0, p. 14.)

As explained above, in evaluating whether a proposed change will cause injury, the State Water

Board must focus on the rights of others. In general, any legal injury will depend on the “relative

seniority of the water rights involved and the presence of natural flow.” (State Water Board

Revised Decision 1641 (D-1641), p. 34.) An appropriative water right holder “can divert and use

any unappropriated water that is flowing in the stream, including abandoned water.” (Id., p. 33.)

A downstream appropriator, however, cannot require the owner of an upstream reservoir to

release previously appropriated water. (State Water Resources Control Bd. Cases, supra, at p.

743.) Put another way, an upstream appropriator is not required to continue to abandon stored

water it has abandoned in the past, causing an artificial flow of water. (Stevens v. Oakdale

Irrigation District (1939) 13 Cal.2d 343.) Thus, if previously stored water is not available to a

water right holder, the water right holder cannot be injured if the water does not arrive at the

water right holder’s point of diversion due to a change in the use of the stored water. (See, e.g.,

D-1641, pp. 33-34 [framing issue as whether “petitioned changes would reduce flows when

natural flows would occur under unimpaired circumstances”].)

Independence Lake (License 4196)

License 4196 is junior in priority to the Orr Ditch Decree rights, including Claim No. 3. (TMWA

3-0, pp. 11-12.) Water users under Claim No. 3 do not have any right, either direct or indirect,

to any water stored in Independence Lake (License 4196) or Stampede Reservoir (Permit

11605). (R.T. IV, 996:12-21.) As explained above, water stored under License 4196 is stored

in conformity with the water right priority system administered by the Federal Water Master.

Thus, “[n]o water can be stored under License 4196, unless the water right for the Newlands

Reclamation Project is fully satisfied.” (TMWA 3-0, p. 12.)

Accordingly, the proposed change in the points of diversion will not cause injury because water

cannot be initially diverted to storage under License 4196 unless allowed under the existing right

and in accordance with the priority system (i.e., rights arising under Claim No. 3 are first met).

Similarly, changes in the points of rediversion and redistribution of storage among

Independence Lake, Stampede Reservoir, and Boca Reservoir will not result in any legal injury.

Protestants do not have a right to water previously stored under License 4196 that is then

rediverted or redistributed, and thus, Protestants cannot be injured by a change in the

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previously stored water. To the extent Protestants suggest that reservoir refill may cause injury,

water diverted to fill any space made available in Independence Lake by moving water to

another reservoir must be diverted in accordance with the terms of License 4196 and the priority

system. (TMWA 3-0, pp. 11-12.) Once the water is diverted to storage in a manner consistent

with water right priorities, water stored in Independence Lake is previously stored water to which

Protestants have no right. For the same reasons, other changes to License 4196 involving

downstream points of rediversion and places and purposes of use will not result in injury. Water

stored under License 4196 is not available to the Newlands Project and thus, changes to that

right cannot cause injury to water users in the Project. (TMWA 3-0, p. 12.)

Stampede Reservoir (Permit 11605)

As with License 4196 for Independence Lake, the priority of storage under the Stampede

Reservoir permit is junior to Claim No. 3. (TMWA 3-0, pp. 12-13.) TCID’s witness admits that

water users under Claim No. 3 do not have any right, either direct or indirect, to any water

stored in Stampede Reservoir (Permit 11605). (R.T. IV, 996:12-21.) Thus, for similar reasons

discussed above regarding the change petition for the Independence Lake license, the

proposed changes to the Stampede Reservoir permit will not injure any legal user of water.

Boca Reservoir (License 3723)

License 3723 has a water right priority of 1926, which normally would be junior to Claim No. 3

as a matter of strict water right application priority. Pursuant to the Truckee River Agreement,

however, the federal watermaster administers the storage priority of the first 25,000 af in Boca

Reservoir ahead of Truckee Canal diversions. (App./Pet. Joint-20, p. 8.) The priority of storage

above the initial storage of 25,000 af under the Boca Reservoir license remains junior to Claim

No. 3. (App./Pet. Joint-20, pp. 8, 10; TMWA 3-0, p. 6.) The proposed changes will not cause

injury because water cannot be initially diverted to storage under License 3723 unless allowed

under the existing right and in accordance with the priority system. The fact that the Truckee

River Agreement—to which both TCID and the Conservation District are parties—allows the

Conservation District to store the initial 25,000 af of water in Boca Reservoir ahead of Truckee

Canal diversions does not change this conclusion with respect to that portion of water stored in

the reservoir. Absent any evidence that the Conservation District is precluded under the

Truckee River Agreement from making changes to the diversion and use of that stored water,

the proposed changes will not injure TCID’s right to the use of water. Thus, for similar reasons

discussed above regarding the change petition for the Independence Lake license, the

proposed changes to those water rights will not cause injury to any legal user of water.

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To the extent Protestants arguably have a legal interest in water stored under the licenses for

Boca or Prosser Reservoirs, which is used to meet Floriston Rates, the proposed changes will

not result in injury. Water users under Claim No. 3 benefit from water released to meet Floriston

Rates. Floriston Rates are met from natural flow, Lake Tahoe storage releases, storage

releases from Boca Reservoir under License 3723, and releases of Tahoe Exchange Water

from Prosser Creek Reservoir under License 10180 pursuant to the Tahoe-Prosser Exchange

Agreement. (App./Pet. Joint-20, pp. 5, 7; App./Pet. Joint-21, pp. 3-4; R.T. I, 128:5-129:20,

131:14-132:13.) The change petitions do not propose to alter the Floriston Rate regime.

Protestants are not injured if water normally released from one reservoir is instead released

from another reservoir such as Independence Lake or Stampede Reservoir.

Prosser Creek Reservoir (License 10180)

The priority of storage under the Prosser Creek Reservoir license, 1958, is junior to Claim No. 3.

According to Petitioners, the Claim No. 3 water users have no right, either direct or indirect, to

any water stored in Prosser Creek Reservoir (License 10180) that is not needed for the Tahoe-

Prosser Exchange. (Joint Closing Brief, p. 11; App./Pet. Joint-20, p. 10.) For the same reasons

discussed above regarding the change petitions for the Independence Lake and Boca Reservoir

licenses, the proposed changes to those water rights will not cause injury to any legal user of

water.

For the reasons discussed above, Protestants do not have a right to water previously stored

under License 10180, and thus, Protestants cannot be injured by a change in the operations

schedule governing the previously stored water.

In sum, Petitioners have provided sufficient information to demonstrate a reasonable likelihood

that the proposed change will not injure any other legal user of water. (Wat. Code, § 1701.2,

subd. (d).) The proposed changes will not result in injury to Protestants because the water

involved in the changes is water previously stored under those junior rights.

5.3.2.2 OPERATIONS OF TROA

In evaluating injury, Protestants contend that the State Water Board must not only examine the

changes proposed on the face of the petitions, but also the effects of the water exchanges,

trades, releases, and carryover storage anticipated by TROA. (TCID briefClosing Brief, p. 8.)

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The State Water Board has appropriately focused the scope of its review in this proceeding on

the changes proposed to the California permit and licenses in the petitions pending before us.

Contrary to Protestants’ suggestion, the State Water Board is not required to evaluate the

effects of other changes that have no connection, besides being changes authorized under

TROA, with the changes pending before us.1718

Protestants contend that subsequent operations of the reservoirs under TROA should be

publicly noticed and that the State Water Board and interested persons should have an

opportunity to review and evaluate the potential effects of those operations on existing water

rights. (TCID-276B, p. 9; TCID Closing Brief, pp. 29-30.) Protestants’ witness, Mr. Kenneth

Knox, asserts that allowing the water right holders to “circumvent” the change petition process

for water stored in the reservoirs “as some form of cart blanche management authority, is not in

the public interest.” (TCID-276B, p. 9.) This decision, however, neither expressly nor impliedly

authorizes any such circumvention of future change petition procedures. California law

establishes a specific framework for processing and approving various changes to water rights

and transfers. (See, e.g, Wat. Code, §§ 1435 et seq. [temporary urgency changes], 1700 et

seq. [changes in point of diversion, place of use, purpose of use], 1725 et seq. [temporary

transfers], 1735 et seq. [long-term transfers].) Any proposed changes to water rights must

comply with any applicable procedures and substantive requirements. Additional notice or

procedures are not generally required, however, when operations are conducted in accordance

with the terms of a permit or license.

With respect to the operation of TROA, Protestants contend that the injury analysis failed to

consider the operation of TMWA’s change applications filed in Nevada to store water in the

California upstream reservoirs. (TCID briefClosing Brief, pp. 8-9.) TROA would be

implemented, in part, by allowing water under Nevada water rights to be stored in California

reservoirs until the water is needed in Nevada, thereby preserving the storing parties’ ownership

of the water rights and priority dates. On March 19, 2010, the Nevada State Engineer issued

Ruling No. 6035, which approved the changes to the Nevada water rights and authorized the

storage of the consumptive use portion of those rights in the upstream reservoirs. (TMWA 1-5;

R.T. I, 228:19-229:10; see N.R.S. § 533.515 [Nevada statute authorizing appropriative permit

1718 Further, the final EIS/EIR evaluated the impacts associated with changes authorized by TROA, including cumulative impacts, and it did not identify any significant environmental effects requiring mitigation.

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with point of diversion in another state when the place of use is situated in the State of

Nevada].)

Petitioners contend that the Nevada change applications do not have to be considered in

the State Water Board’s evaluation of the California change petitions, citing to Water

Code sections 1230-1232. (R.T. I, 229:11-230:2.) They explain that a consumptive use

proportion of a Nevada direct diversion water right should not be considered to be water

stored as the result of any California permits or licenses. Instead, without the Nevada

State Engineer’s approval, the water must be passed through the California reservoirs.

(TMWA 3-0, pp. 14-15.) As noted above, Petitioners have requested that any approval

of the change petitions include a term providing that water stored in the California

upstream reservoirs under Nevada-issued permits, and recognized pursuant to the

provisions of California Water Code sections 1231 and 1232, shall not be considered as

water stored pursuant to the provisions of the California permits and licenses. (USBR-1,

p. 4.)

Water Code sections 1230-1232, which address appropriations from interstate streams,

recognize interstate water right reciprocity and give the same force and effect to water rights of

other states as if the rights were acquired under California law, if the other states provide the

same recognition of California rights. Section 1231 provides, in part:

Upon any stream flowing across the state boundary a right of appropriation having the point of diversion and the place of use in another state and recognized by the laws of that state shall have the same force and effect as if the point of diversion and the place of use were in this State if the laws of that state give like force and effect to similar rights acquired in this State . . . .

Although section 1232, subdivision (a) contains a general exemption from reciprocity for

interstate lakes and streams flowing out of interstate lakes, subdivision (b) expressly

provides that the reciprocity provision applies to “any appropriation or change in point of

diversion, place of use, or purpose of use under a right to the use of waters from the

Truckee River if the appropriation or change is made pursuant to the operating

agreement described in Section 205(a) of Public Law 101-618.” Thus, section 1231

applies to appropriations or changes made pursuant to TROA.

TMWA’s change applications filed in Nevada to store water in the California upstream

reservoirs involve changes in appropriative water rights with points of diversion and

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places of use in Nevada. Under Water Code section 1231, those rights are treated the

same as if the point of diversion and place of use were in California. The need for State

Water Board approval of changes in point of diversion, place of use, or purposes of use

in California depends on the priority date of the appropriation. For appropriations after

the December 19, 1914, effective date of the Water Commission Act, the change

requires the approval of the State Water Board. For changes involving rights initiated

before December 19, 1914, commonly referred to in California as “pre-1914 rights,” the

change must comply with requirements to protect legal users of water, but does not

require approval by the State Water Board. (Wat. Code, § 1706.) TMWA’s Nevada

change applications involve pre-1914 rights.

For the reasons described in this decision, Petitioners have shown that the proposed changes

to California water rights will not injure any legal user of water and are consistent with provisions

of California law governing such changes. To the extent Protestants suggest that operation of

the Nevada change applications in conjunction with the proposed California change petitions

may result in injury, they have failed to rebut the evidence regarding lack of harm or adequately

explain why the evidence is unpersuasive. Moreover, we note that the Nevada State Engineer

has determined that approval of the Nevada change applications will not injure existing rights.1819

While the State Water Board will make its own determination as to whether a change sought

under California law will result in injury, we will afford the Nevada State Engineer’s

determination a high degree of deference to the extent it is relevant to our inquiry.

In accordance with Water Code section 1231, water stored in California under pre-1914 Nevada

water rights will not be considered water stored under rights requiring approval by the State

Water Board. We will include the requested condition in our approval.

5.3.2.3 ADMINISTRATIVE PROVISIONS OF TROA

Protestants allege that instead of adequately analyzing the no injury issue, Petitioners point to

the administrative procedures of TROA as providing a remedy if there is injury to an existing

water right. (TCID briefClosing Brief, pp. 9-10.) Protestants note that Water Code section 1702

requires Petitioners to establish the change will not operate to the injury of any legal user of

1819 Although the Nevada State Engineer did not expressly consider California water rights in acting on the change petitions, in Ruling No. 6035 he concludes that the change does not conflict with existing rights and it does not threaten to prove detrimental to the public interest. (TMWA 1-5, pp. 17-18.)

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water, not to show that there is an available remedy for an existing injury. (TCID briefClosing

Brief, p. 10.) As explained herein, the State Water Board independently finds that the change

will not injure a legal user of water and does not rely on the administrative provisions of TROA

as the basis for this finding.

5.3.2.4 SHORTAGES TO NEWLANDS PROJECT

Protestants contend that the only evidence presented related to the operation of TROA shows

shortages to the Newlands Project. As evaluated in the EIS/EIR, the Newlands Project water

supply consists of the total of the Carson River discharge and supplemental Truckee River

water available for diversion via the Truckee Canal to Lahontan Reservoir. (USBR-4, p. 8, fn.

1.) The EIS/EIR evaluated the potential effects of TROA on the Newlands Project by

“comparing the quantity of Truckee River water available for diversion at Derby Diversion Dam

and resulting Truckee Canal inflow to Lahontan Reservoir and Lahontan Reservoir storage and

releases to the lower Carson River under the various alternatives.” (USBR-4, p. 8.) At

particular issue in the hearing, Figure 3.23 of the EIS/EIR depicts modeling results that

compares agricultural shortages to the Carson Division under four scenarios: “TROA,” “Current

Conditions,” “No Action,” and “Local Water Supply Alternative.” (SWRCB-7, p. 3-107, fig. 3.23.)

Under TROA and the No Action alternatives, shortages occur in 9 of the 100 years of analysis.

(Id., pp. 3-108, 3-110.) Protestants cite to this information as showing a qualitative trend of

increased shortages to the Newlands Project, especially in critical dry years.

The modeling of shortages in the EIS/EIR, however, does not necessarily equate to evidence of

legal injury under Water Code section 1702. As explained above, it is not enough for a person

claiming that a proposed change will cause injury to show that he or she will receive less water

as a result of the change. (State Water Resources Control Bd. Cases, supra, 136 Cal.App.4th

at 805.) A person claiming injury must demonstrate that he or she has a right to the greater

amount of water claimed and that the proposed change will interfere with that right. (Ibid.)

According to Petitioners’ witness, Mr. Thomas Strekal, the term “shortage” in the EIS/EIR

means “an amount of water less than a full supply during an irrigation season for the Newlands

Project.” (USBR-4, p. 8, fn. 1.) The term “does not and is not intended to indicate that any

irrigation entitlement for any water right owner served by TCID for that season has not been

satisfied.” (Ibid.) Mr. Strekal explained that there was little difference in effect on the Newlands

Project between TROA and the other alternatives, but that slightly less water was available for

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diversion at Derby Dam under TROA “because the holders of upstream senior Truckee River

water rights would be able to exercise their water rights more effectively by diverting the

consumptive use portion of their previously-unused water to storage as credit water.” (USBR-4,

p. 8.)

In contrast, Protestants’ witness, Mr. Ernest Schank, defined “shortage” as “anything less than a

full duty.” (R.T. III, 745:18-20.) Mr. Schank stated that TROA will cause shortages because

water that once flowed downstream to Derby Dam could be impounded by senior water right

holders in upstream reservoirs. (R.T. III, 738:13-21.) He acknowledged that shortages could be

caused by the fact that his water rights are simply junior to other water rights on the system.

(R.T. III, 746:23-747:1.)

The fact that Protestants may receive less water than they have received historically does not

mean that the proposed change will injure Protestants’ legal rights. The references to shortages

in the EIS/EIR, by themselves, do not provide evidence of legal injury. To the contrary, Mr.

Strekal has explained that shortages will occur due to the exercise of senior water rights. As

explained above, an upstream appropriator is not required to continue to abandon stored water

it has abandoned in the past, causing an artificial flow of water. (Stevens v. Oakdale Irrigation

District, supra, 13 Cal.2d 343.) Thus, injury will not result from the lawful exercise of senior

rights. Protestants have not correlated the shortages described in the EIS/EIR with injury to

their legal rights.

5.3.2.5 THE ORR DITCH DECREE AND OTHER APPROVALS

Protestants argue that the “25 percent rule” in the Orr Ditch Decree, which generally limits water

use during any month to no more than 25 percent of the seasonal allowance, applies only to

direct diversion for irrigation use and cannot be applied to storage of any consumptive use rights

or the proposed purposes of TROA.1920 (TCID-287, p. 17.) The Protestants, however, raise this

issue with respect to Nevada water right changes that either have been approved by the

1920 The “General Provisions” of the Orr Ditch Decree state: “No owner or person or party entitled to the use of water under this decree shall be allowed to use for irrigation during any calendar month more than twenty-five per cent of the quantity of direct water in acre fee hereby allowed for the land for the season.” (App./Pet. Joint-7, p. 87.) Another provision allows all water users who are allowed a flow of less than one inch per acre to use a larger flow than that specifically allowed by the Orr Ditch Decree, not to exceed one inch per acre, “provided that the amount of water used during any calendar year shall not exceed the seasonal acre feet allowance for the land, and that the flow allowed would not, if continuous, deliver in any one month in excess of twenty-five (25) per cent for the seasonal allowance in acre feet heretofore in this decree specifically allowed for said lands.” (Id., p. 88.)

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Nevada State Engineer or are pending before him. 2021 (TCID-287, pp. 17-18.) Thus, the matter

is one of Nevada law as applied to Nevada water rights adjudicated by the Orr Ditch Decree and

over which the Orr Ditch Court has exclusive jurisdiction. (United States v. Alpine Land &

Reservoir Co. (9th Cir. 1999) 174 F.3d 1012-1014.)

Protestants also object to lack of need for additional approvals regarding changes to the

California water rights, particularly with respect to operations under TROA. (TCID 276B, p. 8,

opinion 6.) Our consideration and approval of the pending change petitions is in accordance

with applicable state law. To the extent Petitioners may seek additional changes to their

California water rights, applicable state law and procedures will apply to those changes as well.

5.3.2.6 CREDIBILITY OF WITNESS

In sum, Petitioners adequately demonstrated that the proposed changes would not injure any

legal users of water, and Protestants’ evidence and argument to the contrary is not convincing.

The hearing officers observed the witnesses presenting testimony at the hearing. The State

Water Board has carefully reviewed and considered that oral testimony and the written

testimony and other evidence in this proceeding. We find unpersuasive the testimony of

Protestant’s witness, Mr. Kenneth Knox, who testified as an expert witness on various issues,

including the effects of the change petitions and the water right applications.2122 According to

Mr. Knox’s curriculum vitae, a good portion of his professional experience was with the

Colorado Division of Water Resources. (TCID-276A; see also R.T. IV, 1014:9-1015:10

[admitting limited exposure to the subject of his testimony relative to other witnesses].) While

the western states adhere to certain common principles of appropriative water law, each state

has its own unique interpretation of water law concepts and procedural requirements. It is not a

prerequisite for an expert witness testifying about the administration of water rights in California

2021 Protestants made a similar argument to the Nevada State Engineer in the Nevada proceeding on TMWA’s request to add the California reservoirs as points of diversion for the consumptive use portion of TMWA’s Nevada water rights. In Ruling 6035, the Nevada State Engineer noted that he already found that TMWA had not requested to change the Orr Ditch Decree provision and overruled Protestants’ claim. (TMWA 1-5, p. 7.) The Nevada State Engineer further noted that there was no indication in the decree that when “water rights are changed to another manner of use that basic general principles established in the decree are superseded” and he found that no more than 25 percent of the water right could be diverted to storage in any one month. (Ibid.) To avoid potential harm to existing water right holders, however, the ruling requires the diversion rate to be adjusted “to account for the consumptive and non-consumptive portion of the water right.” (Ibid.)

2122 To the extent Mr. Knox opined about the water right applications, the State Water Board does not agree with his conclusions for the same reasons discussed herein.

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to have lived or worked in California, but absent specific knowledge or experience with water

right administration in this state the testimony may be less persuasive.

With respect to this proceeding, Mr. Knox had extremely limited experience with the Truckee

River Basinbasin. (R.T. IV, 949:13-950:13.) Consequently, Mr. Knox did not appear to have

sufficient knowledge of the reservoir operations and water rights about which he was testifying.

(See, e.g., R.T. IV, 958:5-960:3 [explaining that applications should not be granted to avoid

expansion of the water right even if water is available for appropriation], 990:4-19 [did not know

whether Independence Lake was used to meet Floriston Rates], 992:23-995.1 [opining that

carryover storage would alter the amount of water stored under the water rights and that such

storage must be expressly allowed as a term of water rights], 995:10-996:1 [did not know

whether change petitions sought to limit water released from storage], 1006:10-1007:6 [did not

know amount of storage under water right license and did not know amount of storage sought

under change petition but still opined that there would be injury].) In light of the foregoing, the

State Water Board does not agree with Mr. Knox’s conclusions. (Gov. Code, § 11425.50, subd.

(b).)

5.3.3 Initiation of a New Right

A proposed change in the exercise of an appropriative right cannot initiate a new right. (Cal.

Code Regs., tit. 23, § 791, subd. (a).) A change may result in the creation of a new right if it

increases the quantity of water diverted under the existing right, for example, by appropriating a

greater amount of water, increasing the season of diversion, or using a different source of water.

(State Water Board Order No. WR 2009-0061, pp. 5-6, citing Cal. Code Regs., tit. 23, § 699 &

Johnson Rancho County Water District v. State Water Rights Board (1965) 235 Cal.App.2d 863,

879.)

The change petitions for Boca Reservoir, Stampede Reservoir, and Independence Lake seek to

add common points of diversion among the three reservoirs, raising an issue among the parties

as to whether the proposed changes involve the addition of a new source of water supply that

would result in the creation of a new right. (E.g., compare TMWA 3-0 at p. 10 with TCID-287 at

pp. 15-16.) The source of water is a fundamental attribute of a water right that cannot be

changed; thus, the diversion of water from a different source of supply results in an entirely new

appropriation. (State Water Board Order No. WR 2009-0061, pp. 5-6, 16; see also Wat. Code,

§§ 1260, 1301 [requiring water right application and notice to identify source of supply].) What

constitutes a new or different source of water requires a factual analysis by the State Water

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Board that may need to address various factors, including whether the existing and proposed

points of diversion are hydrologically connected, and thus involve a common source of supply,

and the geographic scale of the proposed change.

In this case, however, the analysis is relatively simple. We find that the proposed changes in

the points of diversion do not involve a potential change in source of supply that warrants further

analysis.2223 Independence Lake is located on Independence Creek, which is tributary to the

Little Truckee River, on which Boca and Stampede Reservoirs are located. Thus, the proposed

changes involve adding diversion points along the same stream system and the same source of

supply as the original diversion points. (See Kidd v. Laird (1860) 15 Cal. 161, 179-181 [person

entitled to divert a quantity of water of the stream may take the same at any point on the

stream].) The proposed changes do not involve a different source of supply.

The proposed changes do not seek to appropriate a greater amount of water or to increase the

season of diversion. Petitioners assert that the proposed changes do not initiate a new water

right because the amount of water to be diverted to storage and withdrawn from storage, as well

as the season of diversion, will not change under the existing permits or licenses. On rebuttal,

Protestants contend that the proposed changes will enlarge the existing right because the

redistribution of storage from Boca or Stampede Reservoirs upstream to Independence Lake

has the potential to expand project yields and storage due to the larger contributing watershed

areas for the downstream reservoirs compared to Independence Lake. (TCID-287 at p. 15.)

Additionally, Protestants argue that the proposed changes have the potential to expand

TMWA’s ability to store additional water in Independence Lake by making additional storage

available in Independence Lake in the fall and storing water in the much larger capacity

downstream reservoirs. (TCID-287 at pp. 15-16.)

Testimony in the record, however, indicates that approval of the changes will not result

in an increase in the quantity of water diverted to storage or withdrawn from storage.

(TMWA 3-0, pp. 9-10; R.T. I, pp. 233. ) TMWA does not propose to divert water at either

of the new points of diversion when water is not available in Independence Creek at

Independence Dam. (TMWA 3-0, p. 10.) In fact, to eliminate any concern that the

proposed change in point of diversion would initiate a new right, TMWA has no objection

2223 For example, a proposed change in point of diversion from one tributary to another tributary above the confluence of the two tributaries may raise a potential issue regarding a change in the source of supply.

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to including the following condition with respect to the change petition for Independence

Lake (License 4196):

Water can be initially diverted to storage under License 4196 at Stampede Dam and Boca Dam only at times when flow to an equivalent volume is available at Independence Dam as verified by the TROA Administrator.

(Joint Closing Brief, p. 32.)

Additionally, proposed changes to add points of rediversion or redistribution of storage are

changes in what happens to water after it is initially diverted from the natural streamflow; these

changes do not necessarily affect the rate of diversion, and therefore do not per se result in an

expansion of a water right. (State Water Board Order No. WR 2009-0061, p. 6.) Nonetheless,

we will condition our approval to ensure that water may not be diverted at Boca Reservoir or

Stampede Reservoir that is not available for diversion at Independence Dam. Thus, we find that

the proposed changes will not initiate a new right.

5.4 No Potential Injury to Water Right Holders between Independence and Boca No water right holder on Independence Creek or the Little Truckee River protested or submitted

evidence to support an objection to the change petitions based on injury to their right to use

water. Nonetheless, because the State Water Board’s records indicate that water right holders

exist in the stream reach between Independence Lake and Boca Reservoir, we must evaluate

whether the proposed changes will result in injury to those legal users. In particular, we will

focus on the addition of points of diversion or points of rediversion for License 3723 (Boca

Reservoir), License 4196 (Independence Lake), and Permit 11605 (Stampede Reservoir).

In general, adding a downstream point of diversion to an existing permit or license will not cause

injury to any intermediate downstream water user. Because an upstream water user can take

water before it reaches a downstream applicant, a protest based upon interference with the prior

right of such upstream user normally will not be accepted by the State Water Board. (Cal. Code

Regs., tit. 23, § 749; see id., §.796 [protest procedures on applications shall govern the

procedures on change petitions to the extent applicable].) Adding Stampede Dam and Boca

Dam as points of diversion for License 4196 at Independence Lake (and adding Boca Dam as a

point of diversion for Permit 11605 at Stampede Reservoir), therefore, will not cause injury to

downstream water users. In addition, adding points of rediversion either upstream or

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downstream for Permit 11605 and Licenses 3723 and 4196 will not cause injury because, as

stated above, once water is stored in priority under a valid right, other water right holders cannot

later claim that water when it is released and rediverted at a point downstream.

Adding Independence Dam as a point of diversion for Permit 11605 (Stampede Reservoir), on

the other hand, may reduce flows between Independence Dam and Stampede Dam. Similarly,

adding points of diversion at Stampede Dam and Independence Dam for License 3723 (Boca

Reservoir) may reduce flows between Independence Dam and Boca Dam. Those reduced

flows have the potential to injure water right holders who divert water from those river reaches.

A review of the State Water Board’s Electronic Water Rights Information Management System

(eWRIMS) database shows that in addition to Licenses 3723 and 4196, Permit 11605, and

Application 31487, there is one license, one permit, two state-filed applications, and four

Statements of Water Diversion and Use (statements)2324 on file for the stream reach between

Independence Lake and Boca Reservoir.2425 License 2607 (Application 9267) at Independence

Lake and Permit 18320 (Application 26273) at Stampede Reservoir, are held by TMWA and

Reclamation and TMWA, respectively, who are signatory parties to TROA and who are also

petitioners in this proceeding. They have had ample opportunity to participate in this proceeding

and have not claimed any injury so we will not consider this issue further with respect to those

water rights.

There are two state-filed applications on the Little Truckee River at Stampede Reservoir,

Applications 21069 and 21070. These filings have not been assigned to anyone. Therefore

there is no injury.

Of the four statements filed with the State Water Board, one is a pre-1914 water right claim on

the Little Truckee River, S000387, by Mr. James H. Bickford, downstream of Independence

Lake and upstream of Stampede Reservoir. The United States Forest Service, Tahoe National

2324 Water Code section 5100 et seq. generally requires statements to be filed for the diversion and use of water under certain claimed rights, primarily riparian or pre-1914 appropriative rights. 2425 We take official notice of the information in the eWRIMS database pursuant to California Code of Regulations, title 23, section 648.2 (authorizing the State Water Board to take official notice of matters that may be judicially noticed), and pursuant to Evidence Code section 452, subdivision (c) (authorizing judicial notice of the official acts of administrative agencies). We do not, however, take official notice of the truth of the matters asserted in the database, namely, whether the rights claimed in the statements are valid water rights. The State Water Board does not express any opinion on the validity of water rights claimed in Statements of Water Diversion and Use.

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Forest, also filed two statements, S010367 and S010369, for diversions from Stampede

Reservoir. Although they did not specify the claim of right, it appears that they may be claiming

a riparian right to the use of water at Stampede Reservoir. Upstream, there is one other

statement, S010327, on Independence Creek by Independence Creek Properties. A basis of

right is not specified, but it appears to be a riparian claim. To avoid any potential injury resulting

from the changes in points of diversion, the State Water Board’s approval of the change

petitions will be subject to the rights of persons diverting water for reasonable beneficial use

under valid and properly exercised riparian and pre- and post-1914 appropriative claims of right,

and other claims of right, that have a priority superior to the priority of Permit 11605 or License

3723.

5.5 Approval of the Change Petitions For the reasons discussed above, we find that the proposed changes, as conditioned herein,

will not injure any legal user of water, unreasonably affect fish, wildlife, or other instream

beneficial uses, or initiate a new right.2526 With several exceptions, discussed below, the

requested changes are conditionally approved.

5.5.1 Flood Control

In their change petitions, Petitioners seek to amend the licenses and permit for Boca Reservoir,

Stampede Reservoir, and Prosser Creek Reservoir so that the licenses and permit have the

same purposes of use, including flood control purposes. The permit for Stampede Reservoir

already includes flood control as a purpose of use, but the licenses for Prosser Creek and Boca

Reservoirs do not. Thus, Petitioners request the addition of flood control as a purpose of use to

the licenses for Prosser Creek and Boca Reservoirs.

We have concluded, however, that flood control is not a beneficial use of water. “The concept

that use of public water must be made for beneficial purposes is fundamental in western water

jurisprudence.” (Hutchins, 1 Water Rights Laws in the 19 Western States (1971), p. 438.)

Under California law, an appropriation must be for a useful or beneficial purpose or the right will

cease. (Wat. Code, § 1240.) Previous State Water Board decisions have concluded that flood

2526 On issuance of the amended permit and licenses, and in the permits issued on the applications discussed below, the characterization of the purposes of use will be modified to conform to the terminology contained in our regulations. “Conservation of Pyramid Lake Fishery” and “Wetlands” are included in “Fish and Wildlife Preservation and Enhancement,” and “Instream Water Quality Enhancement” is included in “Water Quality.” (Cal. Code Regs., tit. 23, §§ 666, 670.)

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control is not a beneficial use as a matter of state law and disallowed applications for this

purpose for lack of jurisdiction. (Decision 130 (1926) at p. 6 [storage of water for flood control

purposes is not application of water to beneficial use “but rather the placing of restraint upon

floods in order to prevent damage”]; Decision 100 (1926) at p. 61); Decision 858 (1956) at p.

49.) With respect to flood control, we believe that these previous decisions were correctly

decided and are controlling precedent today.2627 Thus, the requests in this proceeding to add

flood control as a purpose of use to the permits and licenses are denied.

It is unclear why the State Water Board previously approved flood control as a purpose of use

for Stampede Reservoir. (Decision 913 (1958).) To the extent Decision 913 establishes a

precedent for including flood control as a purpose of use, it is overruled.2728 Because flood

control is not a beneficial use, we remove flood control as a purpose of use from Permit 11605.

This correction will not affect operation of Stampede Reservoir for flood control purposes.

Although the flood control project operations may be subject to the State Water Board’s public

trust and reasonable use authority, the diversion of water for flood control purposes, absent

application of the diverted water to beneficial use, is not subject to the requirement for a water

right permit or license. (See Decision 1460 (1976).)

5.5.2 Place of Use

Another exception to our approval of the change petitions concerns the place of use described

on the maps filed with the change petitions and applications. We note that the common place of

use map, map No. 320-208-189A-1, dated July 24, 2006, is inconsistent with the study area

described on page 1-9 of the EIS/EIR and shown on the location map within the EIS/EIR.

According to the EIS/EIR, the study area includes the Truckee River basin in northeastern

California and northwestern Nevada, Lahontan Reservoir, and the lower Carson River basin in

northwestern Nevada. The two basins are hydraulically linked by the Truckee Canal, which

2627 The State Water Board’s decisions are precedential unless otherwise specified. (State Water Board Order WR 96-1, p. 17, fn. 11.) A prior decision or order, however, can be overturned. (Ibid.) 2728 The approval of flood control as a purpose of use in Decision 913 is inconsistent with three other decisions which approve applications filed by Reclamation, but conclude that the State Water Board has no authority to approve flood control as a purpose of use. (Decision 935 (1959) at pp. 64, 101; Decision 990 (1961) at p. 41; Decision 1365 (1970) at p. 5.) To the extent that the reasoning in those decisions suggests that it would be unconstitutional for the State Water Board to include flood control as a permitted use, the decisions cannot be considered precedential because following that reasoning would be inconsistent with a later-enacted constitutional amendment. (See Cal. Const., art. III, § 3.5 [a state agency cannot refuse to follow state law on grounds of unconstitutionality unless an appellate court has held the statute to be unconstitutional].) But the result reached in those decisions – that the purposes of use for which a water right permit may be issued do not include flood control – is sound and the decisions may be considered precedential for that result even if the analyses in the decisions do not expressly reference the principle that flood control is not a beneficial use.

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extends from Derby Diversion Dam on the Truckee River to Lahontan Reservoir on the Carson

River. According to the location map, the study area also includes the Fernley Wildlife

Management Area. The common place of use shown on map No. 320-208-189A-1 generally

falls within the study area boundary, except around the edges where the place of use does not

follow the basin boundaries. The study area weaves in and out of the proposed place of use

boundary, leaving some areas of the place of use outside of the study area. The study area

also does not appear to include the area within T17N, R24E and T18N, R24E. These areas,

however, are within the existing place of use of Permit 11605 and License 10180.

Because the impacts of the proposed changes to the portions of the place of use falling outside the EIS/EIR study area have not been analyzed under CEQA, we cannot approve those changes. Moreover, the Settlement Act prohibits water from being “diverted within the Truckee River basin in California for use in California outside the Truckee River basin.” [App./Pet. Joint-16, § 204(c)(1)(F).) Accordingly, the authorized place of use will include only lands within T13N, R17&18E; T14N, R16-18E; T15N, R16-18E; T16N, R16-18E; T17N, R15–20E, 24–31E; T18N, R14–21E, 24–31E; T19N, R14–31E; T20N, R18–32E; T21N, R18–26E, 29–32E; T22N, R20–24E; T23N, R20–24E; T24N, R20–24E; T25N, R20–24E; T26N, R20–24E; T27N, R20-24E; T28N, R23&24E, MDB&M, which are also within the study area boundary or existing places of use. A revised place of use map will be required prior to the issuance of any amended permit or amended licenses.

5.5.2 5.5.3 Coordinated Reservoir Operations and Exchanges

“TROA allows for the coordinated operations of the reservoirs rather than as individual facilities.

To accomplish this, TROA allows credits to be exchanged among water owners and water to be

used from the reservoir that would be most efficient at that point in time.” (USBR-1, p. 4.)

Some of these exchanges may involve a purely paper transaction, where there is no actual

movement of water. (R.T. II, 500:11-502:24.) To the extent that Petitioners request the State

Water Board to approve a petition for re-diversion that does not purport to physically result in a

re-diversion of the water, it is questionable whether the board would want to consider such a

request. There are practical and policy implications of allowing “re-diversion” under

circumstances where water is not in fact being re-diverted. Nonetheless, we need not decide

this issue here. While TROA may allow the exchange of credit water, the State Water Board

must ensure that water will actually be put to beneficial use. Thus, in order to ensure accurate

accounting of water diversion and use under Licenses 3723, 4196, and 10180, Permit 11605,

and the permits issued pursuant to Applications 31487 and 31488, the State Water Board will

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include a term requiring that, due to the permittee’s or licensee’s ability to exchange water

among water right holders under TROA, beneficial uses for water shall only be credited to the

permit or license under which the water was originally diverted.

5.5.3 5.5.4 Operating Term for License 10180 (Prosser Creek Reservoir)

As noted above, Petitioners request that a term in License 10180 that currently requires

operation of the reservoir in coordination with a specified operation schedule be replaced with

the following term:

The Licensee shall operate Prosser Creek Reservoir in accordance with the Truckee River Operating Agreement, which is on file with the State Water Resources Control Board.

(USBR-1, pp. 3-4.)

The proposed term, which requires the reservoir to be operated in accordance with TROA, is

similar to the following term, which Petitioners have requested for all of the change petitions,

that requires all diversion, storage, use of water and operations to be in accordance with TROA:

These changes are not effective until the conditions required for the Truckee River Operating Agreement to enter into effect have been satisfied. All diversions, storage, use of water and operations under this [License/Permit] shall be in accordance with the provisions contained in this [License/Permit] and the Truckee River Operating Agreement.

Because the two proposed terms have similar effect, to avoid duplication, we will approve

replacement of the existing operations term only with this latter term.

5.5.4 5.5.5 Other Special Terms and Conditions Related to Approval of the Change

Petitions

Terms and conditions in the existing permit and licenses will be updated or added in order to be

consistent with current standard permit and license terms, including amount descriptions. This

also includes the addition of a maximum withdrawal limitation in existing Licenses 3723 and

4196. The maximum withdrawal limitations are contained in the license inspection reports,

which are in the application files for each license. In both cases, the maximum withdrawal

limitation is equal to the full diversion amount.

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Amended Licenses 3723, 4196, and 10180 are subject to mandatory licensing terms shown in

Table D and standard license terms 5i, 30, 69, and M1. Licenses 3723 and 4196 are also

subject to standard license term 22. Amended Permit 11605 is subject to mandatory permit

terms 6, 10, 11, 12, 13, 14, 15, and 63 (A through H) and standard permit terms 22, 30, and 69,

and M.

Existing permit terms in Permit 11605 for Stampede Reservoir will be updated to include

references to Application 31487 and the addition of points of diversion, points of rediversion,

and places of storage. Existing references to Application 15672 (Permit 11604), which was

revoked on February 23, 1971, at the permittee’s request, will be deleted.

In order to prevent injury, and in addition to the specific term discussed above, the amended

permit and licenses will be subject to prior rights. Additional terms and conditions applicable to

approval of the petitions and applications are discussed below in section 9.0.

6.0 WATER RIGHT APPLICATIONS 31487 AND 31488

Together with the change petitions, Reclamation filed two water right applications on existing

reservoirs, Stampede Reservoir (Application 31487) and Prosser Creek Reservoir (Application

31488), located on the Little Truckee River and Prosser Creek, respectively. As with the

change petitions, the applications were filed to accommodate implementation of TROA. (USBR-

1, p. 1.) Similar to the change petitions, Reclamation requests that any approval of the water

right applications include a condition that the approval will not take effect until TROA takes

effect.

Under Application 31487, Reclamation seeks to appropriate 350 cfs by direct diversion from

January 1 to December 31, and up to 226,500 afa by diversion to storage from January 1 to

December 31. The maximum annual quantity requested to be appropriated by direct diversion

or storage under Application 31487 in combination with Permit 11605 is 226,500 af, which is the

capacity of Stampede Reservoir.2829 (USBR-1, p. 5; SWRCB-5.) Reclamation further proposes

2829 Permit 11605 (Application 15673) allows for the direct diversion of 350 cfs from April 1 to November 1 of each year and for 126,000 af diversion to storage from January 1 to December 31 of each year from the Little Truckee River. Reclamation also holds a water right for power generation at Stampede Reservoir, Permit 18320 (Application 26273), which was not part of this hearing. Permit 18320 contains a term that limits the total amount appropriated under Permits 11605 and 18320 to 350 cfs by direct diversion and 126,000 afa by storage. According to testimony,

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to limit the maximum annual quantity of storage under Application 31487 and Permit 11605 to

226,500 af of water. 2930 (USBR-1, p. 5; USBR-7, p. 7.) In addition to a point of diversion at

Stampede Dam, Reclamation requests a point of diversion, rediversion, and redistribution of

storage at Boca Dam, and a point of diversion and redistribution of storage at Independence

Dam. (USBR-1, p. 5.)

Application 31488 is for storage of 30,000 af in Prosser Creek Reservoir, located on Prosser

Creek, tributary to the Truckee River. Reclamation also holds License 10180 (Application

18006) for Prosser Creek Reservoir, which authorizes 30,000 afa to be collected to storage in

the reservoir from April 10 to August 10 of each year, with a maximum withdrawal not to exceed

20,162 afa. (USBR-1, pp. 3, 5.) Under Application 31488, Reclamation seeks to divert water to

storage in Prosser Creek Reservoir from October 1 to August 10, which will authorize collection

to storage beyond the April 10 to August 10 season authorized under License 10180. (Id., p. 5.)

In addition, under Application 31488, Reclamation seeks to increase the maximum withdrawal in

any one year above the 20,162 af identified in License 10180 for Prosser Reservoir, thus

allowing Reclamation to store and withdraw up to 30,000 af in any one year. This would allow

Reclamation to lower the reservoir below 9,838 afa more often, although TROA would require

maintenance of a minimum fish pool of 5,000 af, “or such lesser amount as may be determined

by California Department of Fish and Game to better serve the fishery throughout the Truckee

River Basin.” (App./Pet. Joint-19, § 5.B.6(c)(4), p. 5-15; USBR-21, p. 8.) Reclamation proposes

to limit the maximum annual quantity of storage under Application 31488 and License 10180 to

a combined total of 30,000 af. (USBR-1, p. 5.)

6.1 State Water Board Authority Regarding Water Right Applications When approving an application to appropriate water, the State Water Board must make findings

regarding water availability, beneficial use, public trust, and public interest. In addition to

making a determination of water availability, which is discussed in more detail below, the State

Water Board must consider the relative benefit to be derived from all beneficial uses of water

power production at Stampede Reservoir is incidental to the operation of the reservoir for other purposes. (USBR-7, p. 7.) 2930 The testimony refers to a combined limitation on the maximum annual quantity of storage under Application 31487 and Permit 11605, but does not discuss a combined limitation on direct diversion under the two water rights. We have construed the application to include such a limitation, so that the maximum annual quantity of direct diversion under Application 31487 and Permit 11605 is limited to 350 cfs. There is no evidence in the record supporting a contrary interpretation.

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concerned, including the preservation and enhancement of fish and wildlife, and uses protected

in a relevant water quality control plan. (Wat. Code, § 1257.) The State Water Board may

impose terms and conditions that will best develop, conserve, and utilize in the public interest

the water sought to be appropriated, protect fish and wildlife, and carry out water quality control

plans. (Id., §§ 1253, 1257, 1257.5, 1258.) In evaluating a water right application, the State

Water Board also must ensure the protection of public trust uses, including fish and wildlife

habitat, whenever feasible. (National Audubon Society v. Superior Court, supra, 33 Cal.3d

419.)

6.2 Water Availability When considering whether to approve an application to appropriate water, the State Water

Board must determine whether unappropriated water is available to supply the applicant. (Wat.

Code, § 1375, subd. (d); Cal. Code Regs., tit. 23, § 695.) Unappropriated water includes water

that is not being applied to beneficial use, that is not needed for riparian use, or that is not

otherwise appropriated. (Id., §§ 1201, 1202.) Simply put, “[u]nappropriated water does not

include water being used pursuant to an existing right . . . .” (Cal. Code Regs., tit. 23, § 695.)

In determining the amount of water available for appropriation, the State Water Board shall take

into account, whenever it is in the public interest, the amounts of water needed to remain in the

source for protection of beneficial uses. Beneficial uses include, but are not limited to, instream

uses, recreation and the preservation of fish and wildlife habitat. (Wat. Code, §§ 1243, 1243.5.)

Pursuant to Water Code sections 1205-1207, the State Water Board has adopted a declaration

that certain stream systems in California are fully appropriated either year-round or during

specified months, thereby precluding acceptance of applications to appropriate unappropriated

water from sources subject to the declaration. (State Water Board Order 98-08.) With one

exception not relevant here, the Truckee River and its tributaries are not listed on the

Declaration of Fully Appropriated Stream Systems. The absence of a fully appropriated

declaration regarding a particular stream system, however, does not create a presumption that

water is available for appropriation from that source. (Id., p. 27.)

6.2.1 Overview of Methodology Used

Reclamation’s water availability analyses for Stampede and Prosser Creek Reservoirs evaluate

the amount of water that could be stored in the reservoirs once prior rights and other obligations

have been met. Reclamation primarily focused its water availability analyses on high flow

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years, acknowledging that the amount of water it seeks to appropriate in its applications may not

be available in every year type. (R.T. II, 288:13-21.) In general, Reclamation’s analyses

focused on periods when the storage of water would not interfere with any downstream water

rights and the stored water would otherwise flow to Pyramid Lake. (R.T. II, 288:22-289:1;

USBR-20, p. 8; USBR-21, pp. 8-9.) Reclamation’s methodology is described in more detail

below.

Water Not Always Available in all Water Year Types

Reclamation provided testimony that the amount of water it seeks to appropriate will not

necessarily be available in every year type. (USBR-7, p. 17.) As explained above, water is

stored in the Truckee River reservoirs under a system of water right priorities. (USBR-7, p. 2;

App./Pet. Joint-20, p. 8.) Because Stampede and Prosser Creek Reservoirs are the lowest in

priority to store water in the Truckee River basin, water generally would not be available in

average, below average, or dry water years. (R.T. II, 288:13-18, 291:4-12, 294:8-14.)

Consequently, Reclamation focused its analyses on water availability in wet and above average

water years.3031 (Ibid., USBR-20, p. 15; USBR-21, p. 12.)

Lack of Interference with Downstream Water Rights

Reclamation calculated the available amounts of water for the periods when the storage of such

water would not interfere with any downstream water rights and, if not stored, the water that

would have otherwise flowed to Pyramid Lake. (R.T. II, 288:22-289:1.) Reclamation assumed

that during wetter years, storage of water under the two applications would not interfere with any

downstream water rights and the water reaching Nixon, the last gage before entering Pyramid

Lake, is water left over after all other entitlements have been satisfied. (R.T. II, 321:6-13.)

Thus, according to Reclamation, during wet periods, generally all downstream water rights in

the Truckee River basin can be served by unregulated runoff into the mainstem of the Truckee

River, leaving sufficient additional runoff in Prosser Creek and the Little Truckee River to fill

Prosser Creek Reservoir, and Stampede and Boca Reservoirs, respectively. (USBR-7, p. 11;

USBR-20, p. 9; USBR-21, p. 10; R.T. II, 294:3-23, 321:6-322:1.)

3031 Reclamation’s witness, Mr. Ali Shahroody, testified that while water was available primarily in wet and above average years, there may be circumstances where water would be available in average or below-average years. These circumstances appear to be quite limited. There was only one average year in Reclamation’s analysis for Stampede Reservoir that showed water available above the currently authorized 126,000 af and no below-average water years that showed water available above 126,000 af. (R.T. II, 318:23-319:15; USBR-20, p. 15.) Similarly, there was an average and below average water year that showed water available for storage in Prosser Creek Reservoir above 30,000 af. (USBR-7, p. 34.)

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According to Reclamation’s witness, Mr. Ali Shahroody, storing water under the applications

. . . will not interfere with any California water rights, including any new water that may be appropriated in California, because the [Settlement Act’s] Interstate Allocation between California and Nevada specifies that water for use in Nevada is junior in priority. The storage of water sought herein will not interfere with Nevada water rights because it will only be stored after all other Nevada water rights have been satisfied.

(USBR-7, p. 11; see also p. 27 [containing similar statement regarding the analysis for Prosser

Creek Reservoir].)

Under Nevada Applications 48061 and 48494, the Tribe is authorized to appropriate the

remaining waters of the Truckee River. (USBR-7, p. 9.) Applications 48061 and 48494 each

contain a term that reads:

This permit is issued for all the unappropriated water of the Truckee River and its tributaries, and as such is issued junior in priority to all existing rights on the Truckee River and its tributaries, and can only be exercised in those years where there are high flows in the river in excess of the senior rights. In addition, this permit is issued subject to any interstate allocation of the Truckee River.

(TCID-211; TCID-212.) The Tribe gives its consent to store water in Stampede and Prosser

Creek Reservoirs that would otherwise flow to Pyramid Lake. (USBR-7, p. 9, fn. 2; USBR-21, p.

6, fn. 2.)

Flow Regimes

Water is stored in Stampede and Prosser Creek Reservoirs for the benefit of the Pyramid Lake

fishes. The water is currently managed using flow regime criteria developed by the United

States Fish and Wildlife Service based on six hydrologic year types and the amount of

Stampede Project Water (and Fish Credit Water under TROA) in storage on March 1 of each

year.3132 (USBR-7, p. 10; SWRCB-7, p. 3-53.) The purpose of the flow regime criteria is to

3132 According to the EIS/EIR, “Project Water” is “[w]ater stored in Lake Tahoe, Prosser Creek Reservoir, Stampede Reservoir, and Boca Reservoir pursuant to existing storage licenses or permits (e.g., Stampede Project Water).” (SWRCB-7, p. G-12.) “Fish Credit Water” is defined in the EIS/EIR as “a water category under TROA, used to benefit cui-ui in lower Truckee River/Pyramid Lake and [Lahontan cutthroat trout (LCT)] in the Truckee River basin.” (Id., p. G-6.) “Fish Water” is a “water category under TROA, comprised of Stampede Project Water and Prosser Project Water.” (Ibid.)

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maintain instream flows for cui-ui and Lahontan cutthroat trout in the lower Truckee River and to

restore habitat in the lower Truckee River ecosystem. (USBR-7, p. 10.) Each of the six flow

regimes has a set of monthly inflow targets to Pyramid Lake, with Flow Regime No. 1 having the

highest target flow rates. (Ibid.) Thus, for purposes of the water availability analyses,

Reclamation used Flow Regime No. 1 as the target flow for the lower Truckee River and

assumed water would not be diverted to storage in the reservoirs until the target flow was met.

(Ibid; USBR-20, p. 9; USBR-21, p. 9.)

Analyses Intended to be Conservative

Reclamation notes that its water availability analyses are conservative. For instance,

Reclamation assumed that diversion requirements at Derby Dam to the Truckee Canal were the

same as historic diversions even though there were times when the historical diversions

substantially exceeded the currently allowable OCAP diversions. (USBR-20, p. 9, fn. 4;

USBR-21, p. 9, fn. 3.) By including the higher historical diversions at Derby Dam in its analyses

than would have been allowed under the more restrictive 1997 final adjusted OCAP,

Reclamation’s calculations show less water available in the Truckee River below Derby Dam

and the analyses are thus conservative. (R.T. II, 289:20-290:6.)

In addition, the Truckee Canal diversion is currently limited to 350 cfs due to a breach in the

canal in January 2008. If not for the physical limitation of the canal, more water could be

diverted at Derby Dam, making less water available in Stampede Reservoir. Because the

limitation due to the breach occurred after the period of record used in the analysis for

Stampede Reservoir (August 1969 through September 2006), the 350 cfs limitation is not part of

the analysis. (R.T. II, 307:18-308:9; USBR-20, p. 8.) According to Reclamation’s witness, Mr.

Shahroody, if the limitation continues, there would be more water available than the analysis

shows. (R.T. II, 308:10-18.) Similarly, the January 2008 breach occurred after the period of

record used in the analysis for Prosser Creek Reservoir (August 1969 through September

2006). (USBR-21, p. 8.)

6.2.2 Water Availability Analysis for Application 31487 (Stampede Reservoir)

Reclamation’s water availability analysis for Application 31487 at Stampede Reservoir is based

on the historical operation of Stampede Reservoir from August 1969 through September 2006.

(USBR-7, p. 11.) Reclamation performed a spreadsheet analysis for periods when the priority

of Stampede Reservoir would allow it to store water, which occurs when storage in Boca

Reservoir is full or nearly full. In addition, these are periods when flows at Farad exceed the

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applicable Floriston Rates and flows in the lower Truckee River exceed the target flows under

Flow Regime No. 1. (Id., p. 16.)

The water available for diversion to storage under Application 31487 is water in the Little

Truckee River basin, upstream of Stampede Reservoir, which, if not diverted, would eventually

flow to Pyramid Lake. (SWRCB-7, p. 3-467.) The watershed above Stampede Reservoir drains

approximately 136 square miles. (USBR-7, p. 5, Table 1.) The Little Truckee River is regulated

upstream of Stampede Reservoir by a dam on the privately owned Webber Lake. (USBR-7, p.

4.) In addition, the dam at Independence Lake, which is located upstream of Stampede

Reservoir on Independence Creek, regulates runoff into Stampede Reservoir. (Ibid.) Mr.

Shahroody testified that the USGS gage record from water years 1970 through 2006 shows that

Stampede Reservoir filled close to its full capacity of 226,500 af in ten of the 37 years of record.

(R.T. II, 285:5-18; USBR-20, p. 5, and Figure 3.) According to Reclamation, this demonstrates

that up to 226,500 af of water is available for storage statistically in at least one year out of four

wet years. (R.T. II, 285:12-15.)

According to Reclamation’s analysis, the total amount of water available for diversion to storage

in Stampede Reservoir ranged from 2,350 to 279,040 af per year during the period of record

from water years 1970 through 2006 (37 years). (USBR-20, p. 10.) There were 11 years out of

the 37 years of record when water would have been available for diversion to storage in

Stampede Reservoir in excess of the 126,000 af currently authorized for diversion to storage.

(Ibid.) Only two years in the 37-year record analyzed by Reclamation exceeded 226,500 af

available for storage. (Ibid.) Based on its analysis, Reclamation concludes that water is

available for appropriation in the Little Truckee River to increase the maximum diversion to

storage in Stampede Reservoir from 126,000 afa to 226,000 afa. (USBR-20, p. 16.)

6.2.3 Water Availability Analysis for Application 31488 (Prosser Creek Reservoir)

In assessing water availability for Application 31488 at Prosser Creek Reservoir, Reclamation

used a similar methodology as the analysis for the Stampede Reservoir application. (USBR-21,

pp. 8-9.) Reclamation considered water in the Prosser Creek basin, upstream of Prosser Creek

Reservoir, that would otherwise flow to Pyramid Lake or be stored under the Tahoe-Prosser

Exchange Agreement to be available for diversion to storage under Application 31488.

(USBR-21, pp. 8-9.)

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The watershed above Prosser Creek Reservoir drains approximately 50 square miles.

(USBR-21, p. 4.) There is no other dam or reservoir regulating Prosser Creek upstream of

Prosser Creek Reservoir. (Ibid.) Prosser Creek Reservoir has the most junior priority for

storage in the Truckee River basin, storing water when it is not needed to meet senior

downstream water rights and when storage in the reservoir will not interfere with storage in

other reservoirs in the basin. (USBR-21, p. 2.)

Reclamation presented a storage hydrograph, which showed that in water years 1964 through

2006 Prosser Creek Reservoir nearly filled to its full capacity of about 30,000 af in 17 years

during that period. For its water availability analysis, Reclamation analyzed the historical

operation of Prosser Creek Reservoir for the period August 1969 through September 2006. The

analysis looked at the availability of water to fill an empty reservoir in any one year, as well as

the availability of water to be diverted to storage during the additional fill period October-March

in any one year. (USBR-21, p. 8.) For the period of analysis from water year 1970 through

2006, Reclamation estimated the amount of water available for diversion to storage in Prosser

Creek Reservoir ranged from 27,870 to 135,350 afa, and that water in excess of 30,000 af was

available in 17 out of 37 years. (USBR-21, p. 11.) For the same 37-year period of record,

Reclamation estimated that the amount of water available for diversion to storage in October

through March ranged from 1,420 to 63,030 afa. (Ibid.) According to this analysis, there were

13 out of 37 years of record when there was water available for diversion to storage in October

through March, and six of those years showed water available for storage above 30,000 af.3233

(USBR-21, pp. 11-12.) In sum, Reclamation asserts that water is available in Prosser Creek to

“extend the fill season from the current April 10-August 10 to October 1-August 10 and increase

the existing maximum withdrawal in any one year above 20,162 [af] for Prosser Creek Reservoir

as requested in Application 31488.” (USBR-21, p. 14.)

6.2.4 State Filed Applications

Reclamation’s water availability analyses do not take into account state-filed applications

pending on Stampede and Prosser Creek Reservoirs. As defined in the Water Code,

unappropriated water includes water for which no appropriative right has been approved or

perfected. (See Wat. Code, § 1202.) Hence, the State Water Board may find that there is

3233 The amount that can be stored in Prosser Creek Reservoir from November 1 through April 10, however, is limited by flood control limitations. (USBR-21, p. 11.) During this period, storage in Prosser Creek Reservoir is limited to 9,800 af. (Ibid.)

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unappropriated water available even if there are other applications on file, with earlier priority

dates, that wouldmight make use of all of the unappropriated water if those applications are

approved at some point in the future. (See generally Wat. Code, § 1375, subd. (d) [requiring a

finding that unappropriated water is available to supply the applicant before the State Water

Board may issue a permit].) Nevertheless, it may be useful to evaluate the amounts needed to

serve appropriations proposed by other applications in order to determine whether approval of

the application would be in the public interest.

Water Code section 10500 authorizes DWR to file applications, commonly referred to as state-

filed applications, to appropriate water that may be required to carry out a general or

coordinated plan for the development, use, or conservation of the water resources of the state.

After state-filed applications are filed, they are transferred to and held by the State Water Board

which may release from priority or assign any portion of an application when “the release or

assignment is for the purpose of development not in conflict with such general plan or

coordinated plan or with water quality objectives established pursuant to law.” (Wat. Code, §

10504.) State-filed applications have a priority as of the date of filing, and until assigned, are

not subject to the due diligence requirement that normally applies to water right applications.

(Wat. Code, §§ 10500, 10504.)

There are two state-filed applications with points of diversion at Stampede Dam (Applications

21069 and 21070) and two state-filed applications with points of diversion at Prosser Creek

Dam (Applications 21071 and 21072). All four state-filed applications were filed on December

6, 1962. Application 21069 is for 50,000 afa, to be collected to storage between January 1 and

December 31 of each year. The purposes of use are domestic, irrigation, municipal, industrial,

and incidental recreational, and fish and wildlife enhancement. Application 21070 is for 50,000

afa, to be collected to storage between January 1 and December 31 of each year. The

purposes of use are power, recreational, and fish and wildlife enhancement. Application 21071

is for 30,000 afa, to be collected to storage between January 1 and December 31 of each year.

The purposes of use are domestic, irrigation, municipal, industrial, and incidental recreational,

and fish and wildlife enhancement. Application 21072 is for 30,000 afa, to be collected to

storage between January 1 and December 31 of each year. The purposes of use are power,

recreational, and fish and wildlife enhancement.

Reclamation’s water availability analyses do not include an evaluation of these senior pending

state-filed applications relative to the diversions proposed under Reclamation’s applications.

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Considering the state-filed applications would reduce the water shown available in

Reclamation’s analyses. (USBR-20 and 21.) For example, looking at the consumptive use

applications only (Applications 21069 and 21071), subtracting the state-filed application

amounts from the results of Reclamation’s analyses would have shown one year, 1982, where

the requested amount of water, 226,500 af, in combination with Permit 11605, would have been

available for storage at Stampede Reservoir and multiple years where the requested amount of

water, 30,000 af, in combination with License 10180, would have been available for

appropriation at Prosser Creek Reservoir. If all four state-filed applications, including the non-

consumptive use filings, were considered in the analyses, 226,500 af would not have been

available for storage at Stampede Reservoir in any year, and 30,000 af of water would still be

available for diversion at Prosser Creek Reservoir in multiple years.

These state-filed applications have not been assigned to any applicant, nor is there any pending

request for assignment or release from priority. Accordingly, the existence of the state-filed

applications do not affect our evaluation of water availability in this proceeding. We note,

however, that if any of the state-filed applications are partially or wholly assigned in the future,

permits issued pursuant to Reclamation’s applications would be junior in priority to the state-

filed applications.

6.2.5 Protestants’ Arguments

Protestants assert that the State Water Board cannot grant Applications 31487 and 31488 for

three reasons: 1) all water of the Truckee River and its tributaries has been fully appropriated; 2)

Reclamation’s water availability analyses are severely flawed; and 3) “it is illegal to store the

Tribe’s Nevada permitted unappropriated water, which cannot be considered unappropriated

water under the proposed California Applications.” (TCID Closing Brief, pp. 17-18.)

6.2.5.1 CONTENTION THAT THE TRUCKEE RIVER AND ITS TRIBUTARIES ARE FULLY APPROPRIATED

Protestants contend that the Truckee River and its tributaries in both California and Nevada are

fully appropriated. (R.T. IV, 929:5-12; TCID-267, p. 6.) Protestants initially note that the parties

to TROA “have historically expressed the opinion that the Truckee River system is fully

appropriated.” (TCID Closing Brief, p. 18.) As one example, they cite to positions taken by

TMWA’s predecessor (Sierra Pacific Power Company), the Conservation District, and TCID in

State Water Rights Board (the State Water Board’s predecessor) proceedings involving Lake

Tahoe and its tributaries in the 1960’s. (Decision 1056 (1962); Decision 1173 (1964).) With

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respect to each of the California proceedings cited, the State Water Rights Board determined

that unappropriated water was available for appropriation. We note that the positions that

parties have taken in prior proceedings do not constitute substantial evidence in this proceeding

as to whether or not water is available for appropriation.

Protestants explain that because the Nevada State Engineer has granted rights to all of the

unappropriated waters of the Truckee River and its tributaries, and approximately 95 percent of

the flow originates in California before it enters Nevada, “it is reasonable to conclude the entire

Truckee River and tributary system in both states are fully appropriated, subject to any interstate

allocation.” (TCID-267 (corrected), p. 6; R.T. IV, 928:24-929:4.) According to Protestants, the

main issue relating to the availability of water concerns the Tribe’s permits, Nevada Permits

48061 and 48494. The Nevada State Engineer issued these permits to the Tribe for instream

uses in Nevada for a maximum total combined duty under both permits not to exceed 477,851

afa.3334 (TCID-211, p. 1; TCID-212, p. 1.) The approval for each permit states: “This permit is

issued for all the unappropriated water of the Truckee River and its tributaries . . . .” (Ibid.)

Moreover, Protestants point out, TROA states that “[t]he Signatory Parties agree that water

under [Nevada] Permits Number 48061 and 48494 shall flow to Pyramid Lake for the purposes

described therein and that the Truckee River and its tributaries, in Nevada, is fully appropriated

and therefore closed to any new appropriations.”3435 (App./Pet. Joint-19, pp. 1-4 to 1-5.)

Additionally, Protestants contend, there are a number of pending applications in Nevada that

predate Reclamation’s California water right applications (including TCID’s Nevada Application

9330, which was filed in 1930, and has been denied twice by the Nevada State Engineer) and

that should be decided before the State Water Board acts on the pending California

applications. (R.T. IV, 929:6-12; TCID-267, pp. 2-4.)

3334 More specifically, the permits were issued for instream/in situ recreational use in the Truckee River and Pyramid Lake. The place of use is the Truckee River downstream of Derby Dam, the Marble Bluff Dam and Pyramid Lake Fishway and within Pyramid Lake. (TCID-211; TCID-212.) Recreational use includes helping maintain Pyramid Lake at a stable level to support use for recreation, to prevent the loss of and to conserve cui-ui and Lahontan cutthroat trout, to improve and maintain water quality and quantity in Pyramid Lake and the Truckee River downstream of Derby Dam, to provide flows for the operation of Marble Bluff Dam and Pyramid Lake Fishway, and to provide suitable flows at proper temperatures for the natural spawning of Lahontan cutthroat trout and cui-ui in the Truckee River downstream of Derby Dam. (TCID-211, TCID-212.) 3435 Protestants, however, fail to acknowledge that TROA also provides for the filing of new applications at Stampede and Prosser Creek Reservoirs. (App./Pet. Joint-19 at 7-7.)

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Reclamation argues that its analyses show that water is available for appropriation in California.

The parties supporting approval of the applications respond to Protestants’ arguments by

contending that, despite the Nevada State Engineer’s determination that the Truckee River

stream system is fully appropriated, the State Water Board has not declared the Little Truckee

River or Prosser Creek to be fully appropriated. (Joint Closing Brief, p. 45.) They further note

that the Nevada State Engineer has not, would not, nor could not, ever suggest that any portion

of the stream system in California is fully appropriated.3536 According to Reclamation, water from

the Little Truckee River and Prosser Creek would eventually flow to Pyramid Lake and would be

appropriated by the Tribe under its existing permits from the State of Nevada (Permits 48061

and 48494). Moreover, to the extent that water sought in Reclamation’s applications is water

appropriated to the Tribe in Nevada, the Tribe gives its consent to store that water upstream in

Stampede and Prosser Creek Reservoirs.3637 (R.T. II, 288:1-5, 301:8-15.)

In a stream system that would otherwise be considered fully appropriated, an application may

be processed and a permit issued based on water made available through water exchanges.

(Order WR 98-08 at pp. 21-22.) Thus, to the extent that use under the applications is charged

against Nevada’s allocation of the waters of the Truckee River,3738 the Tribe’s consent means

that water may be considered available for appropriation to the extent that water would

otherwise have been appropriated under Permits 48061 and 48494. To the extent that use is

charged against California’s allocation, the availability of unappropriated water depends on

whether sufficient water is available under California’s allocation to support the proposed

appropriation.

Interstate water allocations are not necessarily determined by strict adherence to priority among

individual users in different states. Rather, the share of users in each state is determined by

voluntary agreement between the states, apportionment by Congress, or apportionment by the

3536 While we agree that it is unlikely the Nevada State Engineer would issue a ruling on matters within another state’s jurisdiction, for purposes of clarification, we note that it is not unprecedented for the Nevada State Engineer to appear in an administrative proceeding before the State Water Board. The Nevada State Engineer previously has appeared before the State Water Board on his own behalf and on behalf of the Director of the Nevada Department of Conservation and Natural Resources, in the board’s hearing on the declaration of fully appropriated stream systems, to make a presentation in support of a finding that no water is available for appropriation from a stream within the interstate Carson River system. (State Water Board Order WR 89-25, p. 5.) 3637 The Tribe’s Permits 48061 and 48494 currently do not have a storage component. (TCID-211; TCID-212; R.T. I, 272; R.T. II, 339:5-14.) 3738 The places of use under the applications include areas in both states. Under section 204(i) of the Settlement Act, water diverted in one state for use in another is charged to the allocation of the state where the water is used.

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courts. (See generally 3 Beck, Water and Water Rights (3d ed. 2010) §§ 43.01, 43.02, pp.

43-3–43-5.) A water right permitted or adjudicated by a state on an interstate stream provides a

right to divert and use water only to the extent the water can be diverted or used within that

state’s share. (Hinderlider v. La Plata River & Cherry Creek Ditch Co. (1938) 304 U.S. 92, 102.)

Moreover, while priority and reliance are substantial considerations in determining the share of

each state, there is no rule that once a state has permitted or adjudicated rights sufficient to fully

appropriate the entire stream, another state’s share is limited to the appropriations it has already

approved. (See id. at pp. 102-03; see also Montana v. Wyoming (2011) 131 S.Ct. 1765 [where

interstate compact made allocation allowing continuation of pre-compact appropriators in both

states, the Court did not impose curtailments by priority date of the individual appropriators, but

instead treated the provision as a separate allocation to each state, allowing full use of the

upstream state’s allocation even though that left insufficient water to fully satisfy the allocation

for appropriators in the downstream state].) Indeed, both the Settlement Act and the previous

attempt at establishing an interstate allocation

of the waters of the Truckee River, the California-Nevada Interstate Compact (Wat. Code, §

5975 et seq.) would set California’s share at an amount that would appear to allow some newly

initiated appropriations. So long as California does not exceed its share, there may be

additional water available for appropriation in California, even if Nevada has already issued

permits sufficient to use any and all water that flows downsteam into Nevada.

Although the Nevada State Engineer has declared the Truckee River and its tributaries to be

fully appropriated and the signatory parties to TROA have declared the Truckee River and its

tributaries, in Nevada, to be fully appropriated, the State Water Board has not declared the

pertinent reaches of the Truckee River and its tributaries in California to be fully appropriated.3839

This is consistent with the principle that each state has authority to allocate water within its

share of the waters of an interstate stream. While Nevada unquestionably has authority to fully

allocate all water available to it, including any water that flows downstream into Nevada

because California does not fully use its share, Nevada’s actions do not have the effect of

allocating water within California’s share.

As we have noted before, the State Water Board’s power “to authorize appropriation of

unappropriated water is limited to California’s equitable share of these interstate waters.”

3839 In Order WR 98-08, the State Water Board declared the Perazzo Canyon, tributary to the Little Truckee River, to be fully appropriated from the confluence of the canyon and the Little Truckee River upstream.

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(Decision 1056, p. 8.) This poses a challenge until and unless the Settlement Act allocation

takes effect or some other binding determination is made of the interstate apportionment. But

determinations of the availability of unappropriated water are always subject to uncertainty.

(See United States v. State Water Resources Control Bd., supra, 182 Cal.App.3d at pp. 102-03

[the State Water Board’s determination, as a prerequisite to issuance of a permit, that there is

unappropriated water available for the applicant, is an “estimate”].)

Although there is insufficient basis in this proceeding to determine that the Truckee River

Basinbasin is fully appropriated in California, the understanding that California is limited to its

share of the waters of the Truckee River and uncertainty concerning amount of that share must

be taken into account as part of water right administration in California. Accordingly, it is

appropriate to set forth a few general principles that should guide the State Water Board in its

administration of water rights in the Lake Tahoe and Truckee River Basinsbasins:

• Although the allocations in the Settlement Act have not yet taken effect, the Settlement

Act provides the best available framework for determining the amount of water available

for use in the Lake Tahoe and Truckee River Basinsbasins. For purposes of both

obtaining the best estimate of available supplies and promoting cooperation to effectively

administer rights to waters in an interstate system, the State Water Board should

administer water rights in California with a view towards assuring that water use in

California is consistent with the Settlement Act.

• Pending the completion of the process necessary for the Settlement Act allocations to

take effect, the State Water Board should avoid approvals that amount to new

commitments of water that may not be available under California’s share. There is a

significant risk that if the Settlement Act allocations do not take effect then the amount

ultimately determined to be California’s share will be substantially less than is allocated

under the Settlement Act. The State Water Board should avoid issuing approvals that

have the long-term effect of increasing water use in California until there has been

definitive determination of California’s share.

• Absent compelling reasons to process a water right application without waiting for the

Settlement Act allocation to take effect, the Division should hold applications for

appropriation, including state-filed applications, in the Lake Tahoe and Truckee River

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Basinsbasins in abeyance. This has been the Division’s practice in recent years, and it

should continue, with appropriate exceptions. Obviously, applications for approvals that

are necessary for the Settlement Act to take effect should be processed. Likewise,

approvals that are urgently needed for environmental or public health reasons should be

allowed to proceed, subject to appropriate conditions to avoid unnecessary increases in

water use. Finally, applications that help further efforts to manage water use in

California within its share by consolidating surface and groundwater use, and assuring

that total use does not increase, may be considered. In general, however, the

uncertainty concerning the availability of water supplies in the Lake Tahoe and Truckee

River Basinsbasins, and the State Water Board’s limited resources for processing

applications, make it undesirable to devote substantial effort to processing applications

until a definitive interstate allocation takes effect.

In this case, there is a compelling reason to process the applications without waiting for the

Settlement Act allocations to take effect: approval of the applications will aid in accomplishing

the purposes of TROA, and the effectiveness TROA is a contingency that must be met before

the Settlement Act allocations can take effect. Additionally, the applications have been

structured to avoid injury to any legal uses of water, in California or Nevada. We will condition

the permits subject to prior rights and to the interstate allocation of water under the Settlement

Act, once effective.

6.2.5.2 CONTENTION THAT THE WATER AVAILABILITY ANALYSIS IS SEVERELY FLAWED

Protestants claim that the Reclamation’s water availability analyses are severely flawed for four

primary reasons. First, Protestants assert that the Reclamation’s analyses are flawed because

they assume a Pyramid Lake inflow target under Flow Regime No. 1 of approximately 251,000

afa, instead of the full 477,851 afa of water authorized under the Tribe’s Nevada Permits 48061

and 48494.3940 (TCID-287. pp. 2-5.) As explained above, Reclamation used Flow Regime No. 1

as the target flow for the lower Truckee River and assumed water would not be diverted to

storage in Stampede and Prosser Creek Reservoirs until the target flow was met. Protestants’

witness, Mr. Chris Mahannah, testified that using the 251,000 afa flow regime in the water

availability analyses reduces the demand below Derby Dam, thereby inflating the amount of

water available for appropriation at upstream locations. (TCID-287, p. 5.)

3940 Protestants cite to hearings before the Nevada State Engineer in 1996 on TCID’s Nevada Application 9330, in which the same witnesses in this proceeding testified that TCID’s proposed fish flow regime below Derby Dam of 204,000 afa was inadequate to protect fish and habitat. (TCID-287, pp. 4-5.)

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Second, Protestants contend that the analyses neglect to consider the physical or flood limit

capacities of the reservoirs, which limit the ability to store water. (TCID-287, pp. 2, 5.) Mr.

Mahannah testified that without the physical capacity to store the water, the water availability

analysis is a meaningless exercise unless additional storage is contemplated. (TCID-287, pp.

6-7.)

Mr. Mahannah presented rebuttal testimony that addressed both of these purported flaws. He

performed a modified water availability analysis for Stampede Reservoir that included the

Tribe’s maximum annual permitted appropriation below Derby Dam, 477,851 af, and considered

reservoir storage limits due to flood control or reservoir capacity. Using these constraints, he

asserts the amount of additional available water at Stampede Reservoir ranges from 0 – 29,167

afa and averages 11,369 afa, which is considerably below the additional 100,500 af storage

volume Application 31487 is seeking. (TCID-287, pp. 7-8; R.T. V, 1079:22-1086:6.) Although

Mr. Mahannah did not perform such an analysis for Prosser Creek Reservoir, he testified that

the results would have been similar or would have shown an even more dramatic reduction in

water availability due to Prosser Creek Reservoir’s flood storage limit and much smaller

capacity as compared to Stampede Reservoir. (TCID-287, pp. 8-9.)

Reclamation’s witness, Mr. Shahroody, testified that he disagreed that he should have used the

entire amount of water authorized under the Tribe’s Nevada permits in his analyses. (R.T. II,

316:3-317:3.) The Tribe’s permits were granted for two general purposes: (1) to conserve the

cui-ui and Lahontan cutthroat trout populations; and (2) to maintain the level of Pyramid Lake.

(TCID-211, Attachment A, p. 2; TCID-212, Attachment A, p. 2.) The second component, inflow

to maintain Pyramid Lake elevation requires an average annual amount of approximately

400,000 af. (See, e.g., TCID-211, Attachment A, p. 2.) Thus, Mr. Shahroody testified, it was

not necessary to include the Tribe’s full permitted amount—above Flow Regime No. 1—in his

calculations because the water required to maintain the level of Pyramid Lake will get to the lake

eventually. It is simply a matter of timing. (R.T. II, 330:14-331:17.)

Mr. Shahroody also testified that his analysis was a watershed yield analysis. He was only

looking at the water available in the Little Truckee and Prosser Creek watersheds, independent

of reservoir capacity. (R.T. II, 345:12-18.) The ability to store that water depends on a variety

of factors. Mr. Shahroody provided testimony that water may be carried over in Stampede

Reservoir depending on hydrologic conditions and releases made for the Pyramid Lake fishes in

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the lower Truckee River in prior years. During dry periods, a significant portion of the water

stored in Stampede Reservoir is released to benefit listed fishes in the lower Truckee River.

Stampede Reservoir, for example, was “practically emptied” in water years 1976 and 1977.

(USBR-20, p. 11.) If the period 1976-1977 were followed by water years similar to 1982 or

1983, Stampede Reservoir could be filled to its capacity (226,500 af) in one year. (Ibid.) Mr.

Shahroody provided similar testimony regarding the hydrologic analysis for Prosser Creek

Reservoir. Water is carried over in Prosser Creek Reservoir depending on hydrologic

conditions, the Tahoe-Prosser exchange, and releases made for the benefit of Pyramid Lake

fishes in prior years. Mr. Shahroody also noted that Prosser Creek Reservoir was emptied in

the drought years of 1976 and 1977. (USBR-21, p. 11.)

With respect to these two alleged flaws, we find that it was appropriate to analyze the watershed

yield in the Little Truckee River and Prosser Creek Reservoirs and the satisfaction of senior

rights, including the flow regime necessary for fish and wildlife purposes, in determining the

availability of water for storage. The purpose of a water availability analysis is simply that—to

determine whether unappropriated water is available to supply the applicant. (Wat. Code, §

1375, subd. (d).) The issues that Protestants raise about storage capacity and flood control

limitations are issues related to project yield and the applicant’s ability to put water to beneficial

use, which are not germane to the threshold issue of water availability.

Moreover, Protestants’ argument that Reclamation should have considered the full 477,851 afa

of water under the Tribe’s Nevada Permits, instead of Flow Regime No. 1 target of

approximately 251,000 afa, is without merit. It was appropriate to consider the flow regime

target in the water availability analysis because in determining the amount of water available for

appropriation, the State Water Board must consider, whenever it is in the public interest, the

amounts of water needed to remain in the source for protection of beneficial uses, such as

instream uses, recreation and the preservation of fish and wildlife habitat. (Wat. Code, §§ 1243,

1243.5.) Including the flow regime target in the water availability analysis helps to inform the

State Water Board’s determination.

The real issue, however, is not whether Reclamation should have evaluated Flow Regime No. 1

instead of the Tribe’s permitted amount of 477,851 afa, but whether the 477,851 afa should

have been included in the water availability analysis in the first instance. We have already

addressed this issue above. The Tribe’s consent means that water that might otherwise be

considered unavailable, because it would be needed to assure adequate flows to satisfy the

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Tribe’s permitted amount, is available for diversion to storage under the applications. Moreover,

to the extent the Tribe’s water is used to support the level of Pyramid Lake, the Tribe is not

harmed if reductions in inflows below the permitted amounts are compensated for by releases

from storage at other times. Changing the timing of inflows into Pyramid Lake, without affecting

the total amount, amounts to a physical solution because it allows for more efficient use of

available supplies while protecting the water rights held by the Tribe. (See generally Order

WRO 2004-0004 at pp. 15-16 [summarizing the physical solution doctrine].)

Third, Protestants argue that Reclamation’s water availability analyses are static analyses that

consider only selected years and historic data, and not future conditions under TROA.

(TCID-287, pp. 9-10.) Protestants’ witness testified that under future TROA conditions, end-of-

month reservoir storage values will be higher than the historical values used in the water

availability analyses. (TCID-287, p. 9.) Protestants suggest that a more robust model should

have been used to account for such future conditions. (Id., p. 10.) For the same reasons we

have explained above, however, a water availability analysis need not address future operating

conditions of a proposed project as long as the analysis demonstrates that unappropriated

water is available to meet the maximum potential diversion and use sought by the water right

application.

Fourth, Protestants object that the water availability analyses include “water that is already

within their permitted allotment in their analysis as available water in addition to the amount

stored in the reservoir.” (TCID-287, p. 10.) For example, they contend it is incorrect to include

the 126,000 af already permitted for Stampede Reservoir as water available for appropriation.

(Id.) Reclamation and the parties supporting the applications respond that this permitted

amount is included within the analysis “because the maximum annual quantity to be

appropriated by direct diversion or by storage under Application 31487 is 226,500 afa, in

combination with Permit 11605.” (Joint Closing Brief, p. 44, italics in original.)

The State Water Board finds that because any permit authorized under either Application 31487

(Stampede Reservoir) or Application 31488 (Prosser Creek Reservoir) will contain an annual

maximum limitation applicable to the combination of rights for the respective reservoirs, it was

not erroneous to include the existing permitted amount within the water availability analysis. For

example, approval of Application 31487 will require a term limiting the overall diversion (direct

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diversion plus storage) to 226,500 afa, in combination with existing Permits 11605 and

18320.4041 Thus, the maximum storage allowed at Stampede Reservoir will be 226,500 afa

regardless of whether water is stored under Application 31487, Permit 11605, or Permit 18320.

4142 Application 31488 will include a similar combined storage limitation with existing License

10180. The water availability analyses demonstrate that during certain flow periods water is

available to fill Stampede and Prosser Creek Reservoirs to their maximum capacities in any one

year.

6.2.5.3 CONTENTION THAT THE CURRENT STORAGE OF WATER IN STAMPEDE RESERVOIR VIOLATES NEVADA AND CALIFORNIA LAW

Protestants argue that unappropriated water is currently being stored in Stampede Reservoir,

which violates both Nevada and California law. (TCID Closing Brief, pp. 24-25.) In sum,

Protestants contend that the Tribe is storing water in Stampede Reservoir under its Nevada

water right permits without first seeking permission from the Nevada State Engineer. They also

argue that the current use of Stampede Reservoir violates California law because certain

reservoir operations, including the amount of water stored and purpose of use, are not

conducted in accordance with the terms of Permit 11605.

Protestants’ argument invokes the State Water Board’s enforcement discretion more than it

addresses water availability, and we need not address it in detail here.4243 We note, however,

that the State Water Board is directed to take vigorous action to enforce the terms and

conditions of permits and licenses, and to prevent unauthorized diversion of water. (See Wat.

Code, § 1825.) Of course, the State Water Board has broad authority to set enforcement

policies and priorities. Thus, the State Water Board’s decision whether to take enforcement

action is discretionary and the board may elect not to take enforcement in certain

circumstances, such as when a permittee or licensee is diligently pursuing necessary changes

4041 We find the amount of water authorized under Reclamation’s power generation permit at Stampede Reservoir, Permit 18320, is accounted for in the water availability analysis because: 1) the water availability analysis considered senior rights; 2) the combination of all three permits will be limited to 226,500 afa for both direct diversion and storage; and 3) Permit 18320 contains a term limiting the total amount appropriated under Permits 11605 and 18320 to 350 cfs by direct diversion and 126,000 afa by storage, which is equal to the existing diversion limitation on Permit 11605 alone. 4142 “To prevent the establishment of water rights in excess of available water and in excess of the reasonable needs of the user, diverted water is credited to the senior right to the limit of that right.” (SWRCB Order WR 85-4, p. 5.) Only diversions that exceed the senior right or that are made under conditions not authorized by the senior right can be credited to the junior right. (Ibid.) 4243 To the extent Protestants raise issues regarding the Tribe’s compliance with Nevada law, those issues are not properly before us.

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in their water rights. Moreover, any enforcement action must be properly noticed. (See, e.g.,

Wat. Code, §§ 1055 [administrative civil liability complaints], 1831 [cease and desist orders].)

The notice for this hearing focused on the petitioned changes and water right applications, and

thus, this proceeding is not the appropriate forum for the enforcement of water rights.

6.2.6 Conclusions Regarding Water Availability

Having considered the foregoing, the State Water Board finds that unappropriated water is

available for appropriation under Applications 31487 and 31488. The amount of water

Reclamation seeks to appropriate will not always be available for diversion and may vary from

month to month and year to year. Reclamation has demonstrated, however, that water will be

available for appropriation during high flow periods when senior rights have been satisfied. The

water availability analysis shows that water is available in the Little Truckee River for diversion

to storage in Stampede Reservoir4344 above the current diversion quantity of 126,000 afa.

During certain flow periods, up to 226,500 af of water is available for appropriation by direct

diversion and to surface storage for beneficial use under Application 31487 in combination with

Permit 11605. The State Water Board further concludes that during certain flow periods up to

30,000 af of water is available for appropriation to surface storage for beneficial use under

Application 31488 in combination with License 10180 (Application 18006).

6.3 Beneficial Use and Public Interest An appropriation of water must be for a useful or beneficial purpose. (Wat. Code, § 1240.) The

State Water Board will allow the appropriation for beneficial purposes of unappropriated water

under such terms and conditions as in its judgment will best develop, conserve, and utilize in the

public interest the water sought to be appropriated. (Wat. Code, §§ 1253, 1257; see also Wat.

Code, § 1255 [requiring Board to reject application that would not best conserve the public

interest].)

Reclamation seeks to appropriate water under Applications 31487 and 31488 for the following

purposes of use: Domestic, Municipal, Industrial, Irrigation, Fish Culture, Recreational Uses,

Conservation of Pyramid Lake Fishery, Stockwatering, Fish and Wildlife Protection and

Enhancement (including Wetlands), Power (Incidental), Instream Water Quality Enhancement,

and Flood Control. (SWRCB-5; SWRCB-6.) With the exception of flood control, discussed

4344 With additional points of diversion at Independence Lake and Boca Reservoir.

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above, these purposes are beneficial ones recognized by the State Water Board. (Wat. Code,

§§ 1243, 1254; Cal. Code Regs., tit. 23, § 659 et seq.)

The evidence in the record indicates that the water appropriated under Applications 31487 and

31488 will be put to beneficial use. Fish and wildlife preservation and enhancement is a primary

beneficial use under the applications, with recreation as an incidental beneficial use resulting

from the additional water stored in the reservoirs. (USBR-5, pp. 6-7; R.T. II, 302-303.) Because

TROA allows for the coordinated operations of Boca, Stampede, Prosser Creek, and

Independence Reservoirs, discussed above with respect to the change petitions, the water

diverted under the two applications may be used for any of the common purposes of use

requested in the applications and petitions.4445 (SWRCB-5 & -6; USBR-1, p. 5.) Our approval is

limited to the quantity of water that can be beneficially used.

Moreover, the evidence supports a determination that the proposed appropriation of water in

Stampede and Prosser Creek Reservoirs will serve the public interest by providing operational

flexibility in implementing TROA. For example, additional storage in the reservoirs for later

release will provide water for the threatened and endangered Pyramid Lake fishes, as well as

other fishes, enhance habitat for fish, waterfowl and shore birds, and provide increased

recreational opportunities. (USBR-5, pp. 6-7; USBR-7, p. 39.) Approval of the applications also

will help to improve water quality in the lower Truckee River by increasing instream flows

through storage releases and provide flexibility for maintaining a municipal drought supply.

(USBR-7, pp. 41-42.) Such benefits are in the public interest.

Protestants, however, assert that the Truckee River and its tributaries are fully appropriated and

that approving new appropriations is detrimental to the public interest. (TCID-287, p. 1.) They

also suggest that the shortages to the Newlands Project resulting from TROA operations that

are identified in the EIS/EIR controvert the public interest. (R.T. IV, 945:22-946:5.) We have

already determined that water is available for appropriation and that, in our discussion of the

change petitions, the shortages identified in the EIS/EIR do not equate to legal injury. While the

public interest encompasses broader concerns than water availability and legal injury,

4445 We note, however, that any license that may be issued on either Application 31487 or Application 31488 will be limited to the amount of water that is determined to have been applied to beneficial use, and the purposes for which the water is beneficially used. (Wat. Code, § 1610.)

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Protestants have not submitted credible evidence that the applications will not conserve the

public interest.

6.4 Redistribution of Storage Application 31487 requests “redistribution of storage” 4546 at Boca and Independence Reservoirs.

(USBR-1, p. 5.) The State Water Board, however, generally uses the term “redistribution” when

reallocating authorized quantities of water in an existing permit or license among multiple

reservoirs, and not in connection with an application for a new appropriation. Nonetheless, by

including points of diversion, points of rediversion, and the associated places of storage in the

new permit for Application 31487 in the Little Truckee River watershed, we believe Applicant’s

request to physically store water in the specific reservoirs is satisfied.

6.5 Terms and Conditions Relating to Approval of the Applications Permits authorized under Applications 31487 and 31488 are subject to mandatory permit terms

6, 10, 11, 12, 13, 14, 15, and 63 (A through H) and standard permit terms 30, 69, 203, and M.

The permit authorized under Application 31487 is also subject to standard permit term 22. The

permit authorized under Application 31488 is also subject to standard permit term 5i.

This decision will require a limitation on the amount of water directly diverted under Application

31487 in combination with the other water rights for Stampede Reservoir. Permit 11605 for

Stampede Reservoir has a direct diversion limit of 350 cfs in combination with the now-revoked

permit issued pursuant to Application 15672. The reference to the revoked permit will be

removed from amended Permit 11605. The existing permit for power use at Stampede

Reservoir, Permit 18320 (Application 26273), has a direct diversion limit of 225 cfs and a

combined direct diversion limit with Permit 11605 of 350 cfs. On the application form for

Application 15673, the applicant estimated the “capacity of the diversion conduit or pumping

plant proposed” to be 350 cfs. The applicant did not request a combined rate of 700 cfs for

Application 31487 and Permit 11605 or propose construction. The State Water Board,

therefore, construes the maximum combined rate requested to be 350 cfs. Therefore, the

permit issued pursuant to Application 31487 shall include a maximum simultaneous rate of

direct diversion of 350 cfs for water rights at Stampede Reservoir to ensure that the diversion of

4546 Attachment No. 1 to Application 31487 includes the following footnote: “Redistribution as used in this petition means that a quantity of water which would have been or is physically stored in a reservoir under this license (permit) may be stored in another reservoir under this license (permit).” (SWRCB-5.) Presumably Reclamation meant to say “application” in place of “petition.”

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water under the combination of water rights for the reservoir does not result in adverse effects

that were not considered in this proceeding.

Moreover, in order to protect other water rights and instream beneficial uses, the permit for

Application 31487 will also contain a term stating that the equivalent of the authorized

continuous flow allowance for any 30-day period may be directly diverted at Stampede

Reservoir in a shorter time, provided there is no interference with other rights and instream

beneficial uses, and provided further that all terms and conditions protecting instream beneficial

uses are observed.

The water appropriated under Application 31487 will be limited to the quantity that can be

beneficially used and shall not exceed 350 cubic feet per second by direct diversion at

Stampede Reservoir and 226,500 afa by storage at Independence Lake, Stampede Reservoir,

and Boca Reservoir from January 1 to December 31 of each year. The total amount of water to

be taken from the source (direct diversion plus collection to storage) shall not exceed 226,500 af

per water year of October 1 to September 30. The total quantity of water collected to storage

under the permit issued pursuant to Application 31487, Permit 11605 (Application 15673), and

Permit 18320 (Application 26273) shall not exceed 226,500 af.

With respect to Prosser Creek Reservoir, the water appropriated under the permit issued by this

decision will be limited to the quantity that can be beneficially used and shall not exceed 30,000

afa to be collected from October 1 of each year to August 10 of the succeeding year. The total

quantity of water collected to storage at Prosser Creek Reservoir under the permit issued

pursuant to Application 31488 and License 10180 (Application 18006) shall not exceed 30,000

afa.

The permits issued pursuant to Applications 31487 and 31488 will contain standard permit term

9, which states that construction work and complete application of the water to the authorized

use shall be prosecuted with reasonable diligence and be completed by December 31, 2022.

Before issuing a license that confirms the right to appropriate 226,500 af of water under

Application 31487 in combination with Permits 11605 and 18320 or a license that confirms the

right to appropriate 30,000 af of water under Application 31488 in combination with License

10180, the State Water Board will determine whether such an amount has been applied to

beneficial use by the permittee. (Wat. Code, § 1610.) In each case, if the permittee does not

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capture and put the full amount to beneficial use, the State Water Board may, when the project

is licensed, reduce the right to appropriation to the maximum amount of water put to beneficial

use in any one year over the life of the permit. (Wat. Code, §1610.5.)

For the reasons discussed above in the change petitions section, we will not include in our

approval (i) use of the term “redistribution of storage,” or (ii) places of use not evaluated in the

EIS/EIR, or (iii) flood control as a purpose of use. Special terms imposed in our approval of the

change petitions will also be imposed in the approval of the applications.

As discussed in section 5.5.2, because the impacts of the proposed applications on the portions of the place of use falling outside the EIS/EIR study area have not been analyzed under CEQA, we cannot approve those areas in the place of use. Moreover, the Settlement Act prohibits water from being “diverted within the Truckee River basin in California for use in California outside the Truckee River basin.” (App./Pet. Joint-16, § 204(c)(1)(F).) Accordingly, the authorized place of use will include only lands within T13N, R17&18E; T14N, R16-18E; T15N, R16-18E; T16N, R16-18E; T17N, R15–20E, 24–31E; T18N, R14–21E, 24–31E; T19N, R14-31E; T20N, R18–32E; T21N, R18–26E, 29–32E; T22N, R20–24E; T23N, R20–24E; T24N, R20–24E; T25N, R20–24E; T26N, R20–24E; T27N, R20–24E; T28N, R23&24E, MDB&M, which are also within the study area boundary or existing places of use. A revised place of use map will be required prior to the issuance of any permits. Additional terms and conditions related to the approval of the application and petitions are discussed in section 9.0.

7.0 ENVIRONMENTAL EFFECTS OF THE CHANGE PETITIONS AND WATER RIGHT APPLICATIONS

As discussed above, in considering the change petitions and water right applications, the State

Water Board must evaluate the environmental effects of the proposed changes, including any

effects on water quality, fish, wildlife, and other instream beneficial uses, and other public trust

resources. We note that the purposes of the Settlement Act authorizing TROA include providing

benefits to fish and wildlife and recreation, promoting the enhancement and recovery of the

Pyramid Lake fishery, and protecting and enhancing significant wetlands and the wildlife that

depend on those wetlands. (App./Pet. Joint-16, § 202; see also App./Pet. Joint-19 (TROA), p.

1-1, § 1.A.1 [identifying provisions of the Settlement Act that TROA is intended to satisfy].)

TROA itself states that it is “intended to implement California’s responsibilities under the public

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trust doctrine” through coordinating operation of the various reservoirs, by supporting recreation

and instream flows, and by providing for consultation with California. (App./Pet. Joint-19, p. 1-2,

§ 1.A.3.) By themselves, these statements of purpose do not suffice to fulfill the State Water

Board’s obligations under the public trust doctrine and other state law. The evidence in the

record, however, supports the conclusion that approving the four change petitions and two

water right applications that were filed to implement TROA will not adversely affect water

quality, fish, wildlife, and other instream beneficial uses, and other public trust resources, and in

fact, may benefit those resources through operation of TROA.

As discussed previously, the EIS/EIR evaluated the effects of implementing TROA and the

associated change petitions and water right applications. (SWRCB 7, pp. 3-457 to 3-469.) The

analysis addressed various resource areas within the State Water Board’s purview, including

water quality, biological resources (fisheries, wildlife, and riparian and wetland habitat) and

recreation. (USBR-4, pp. 4-7; SWRCB-7.) The final EIS/EIR did not identify any significant

adverse environmental effects under TROA requiring mitigation.4647

As noted above, TCID’s witness criticized the Truckee River Operations Model used in the

preparation of the EIS/EIR. While the State Water Board, as a responsible agency under

CEQA, is subject to a conclusive presumption that an EIR complies with CEQA (Cal. Code

Regs., tit. 14, § 15231), no such conclusive presumption applies to the State Water Board’s

responsibilities under other provisions of state law, such as the public trust doctrine.

Nonetheless, the State Water Board will consider an environmental document prepared under

CEQA to inform its review pursuant to the public trust doctrine and other laws, and may afford

the document substantial weight in light of the evidence in the entire hearing record.

In this case, Protestants did not submit any evidence demonstrating that the approval of the

change petitions and water right applications would have a significant adverse affect on water

quality, fish, wildlife, and other instream beneficial uses, and other public trust resources.

4647 The State Water Board’s consideration of an appropriation of water in California from an interstate river system raises issues regarding the geographic scope of the board’s purview under CEQA, the public trust doctrine, and other state law, and its responsibility to minimize any environmental effects across state lines. (See, e.g., Pub. Resources Code, § 21080, subd. (b)(14) & Cal. Code of Regulations, tit. 14, § 15277 [creating a limited exemption from CEQA for projects or portions of projects located within another state]; National Audubon Society v. Superior Court, supra, 33 Cal.3d at 425 [“the core of the public trust doctrine is the state’s authority as sovereign to a continuous supervision and control over the navigable waters of the state” (italics added)].) We need not consider such issues further, however, given that the EIS/EIR analyzed the project’s effects on the entire interstate riverine environment and found

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Instead, the primary focus of TCID’s testimony was on the adequacy of the modeling and the

project’s effects on water users represented by TCID. The Truckee River Operations Model

was used in the preparation of the EIS/EIR to simulate water management and demands in the

Lake Tahoe, Truckee River, and lower Carson River basins. (SWRCB-7, p. 3-30) The

operations model generated “a 100-year data set of simulated riverflows, diversions, and return

flows as well as reservoir storage, releases, and spills for current conditions and each

alternative.” (Id., at p. 3-35.) The results generated by the model were used to identify potential

hydrologic differences among current conditions and the alternatives and then to compare the

potential effects of the alternatives on water and water-related resources in the study area. (Id.

at p. 3-30.)

The State Water Board recognizes that there is a degree of uncertainty inherent in computer

modeling, but also recognizes that computer models may provide the best available tool for

evaluating particular conditions or effects. (See, e.g., State Water Board Decision 1631 (1994,

pp. 15-16 [describing use of computer models in evaluating water diversion alternatives]; see

also State Water Resources Control Bd. Cases, supra,136 Cal.App.4that p. 795, quoting Laurel

Heights Improvement Assn. v. Regents of University of California (1988) 47 Cal.3d 376, 409 [in

a challenge to studies on which an EIR is based, “the issue is not whether the studies are

irrefutable or whether they could have been better,” but whether the studies are sufficiently

credible as part of the total evidence].) In this case, the project proponents acknowledged the

limitations of the operations model, but concluded that it was appropriate for a comparative

analysis of the various alternatives. (SWRCB-7, pp. 3-35 to 3-36.) While Protestants may

prefer that the operations model be rewritten or that a different model be used,4748 they have not

met their burden to demonstrate that that the modeling used to support the EIR is “clearly

inadequate or unsupported.” (State Water Resources Control Bd. Cases, supra, at p. 795,

quoting Laurel Heights, supra, at p. 409, fn. 12.) Nor do Protestants proffer any modeling or

analysis of their own, or any credible evidence of any significant adverse effects associated with

the approval of the change petitions and water right applications.

no significant adverse effects, and in light of our conclusion herein that the project will not significantly affect water quality, fish, wildlife, and other instream beneficial uses, and other public trust resources. 4748 TCID suggested RiverWare as an alternative model in its comments on the EIS/EIR. (TCID-275B, p. 5; R.T. III, 781:13-15.) According to the responses to comments in the EIS/EIR, however, RiverWare had not been developed for the system at the time of the TROA negotiations and preparation of the EIS/EIR. (SWRCB-7, p. 421, Response PW 06-03.)

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In contrast, the EIS/EIR, the expert testimony, and other evidence in the hearing record provide

substantial evidence supporting a finding that the proposed actions generally will have no effect

on, or will benefit, environmental resources along the Truckee River, and that any adverse

effects are minimal in light of the benefits that will accrue from the project. (SWRCB -7;

USBR-4, at pp. 4-9; USBR-5, at pp. 5-7; USBR-6, USBR-7, at pp. 39-42; TMWA 4-0; DWR-1, at

pp. 5-10.) The project proponent’s conclusions were not solely based on the operations model

results, but also on the professional judgment of the experts involved. (R.T. II, 442:18-444:1;

R.T. III, 629:19-23.) Moreover, TROA was negotiated to satisfy provisions of the Settlement Act

requiring enhancement of fish, wildlife and recreational beneficial uses, as well as TROA’s own

objectives of implementing California public trust, and to avoid significant adverse effects to

biological resources; given these objectives, it is unsurprising that no need for mitigation has

been identified by the project proponents. (USBR-6, p. 1; App./Pet. Joint-19, p. 1-2, § 1.A.3.)

According to the testimony, approval of the change petitions and water right applications would

provide opportunities under TROA for water managers to protect and enhance fish habitat,

water quality, and recreational opportunities in the Truckee River system. (USBR-5, pp. 5-7.)

In sum, we conclude that approval of the change petitions and water right applications will not

significantly adversely effect water quality, fish, wildlife, and other instream beneficial uses, and

other public trust resources.

In light of the proposed exchanges and changes in reservoir operations, however, we must

ensure that existing instream flow requirements imposed by the State Water Board under its

public trust, water right and water quality authorities are maintained. When a point of diversion

or rediversion is added to a permit or license, and that point has an existing instream flow

requirement imposed on another claim of right using the same point of diversion or rediversion,

it is reasonable to require the permittee or licensee to meet the sameensure that the instream

flow requirement continues to be met. Otherwise, allowing a permittee or licensee to use the

new point of diversion or rediversion without observing the existing flow requirement may

adversely affect public trust or other resources. Thus, we will imposecondition the permits and

licenses to which the points of diversion and rediversion are added to ensure that the existing

instream flow requirements for Stampede Reservoir and the Farad Diversion Dam Replacement

Project4849 on all permits and licenses to which the points of diversion and rediversion already

subject to the flow requirements are added are met.

4849 We take official notice of Condition 12 of the water quality certification issued for the Farad Diversion Dam Replacement Project, the bypass term, pursuant to California Code of Regulations, title 23, section 648.2 (authorizing

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8.0 EVIDENTIARY MOTIONS During the course of this proceeding, TMWA and other parties objected to numerous exhibits

submitted by TCID. On July 15, 2011, TMWA moved to exclude TCID’s testimony, expert

reports, and exhibits primarily relating to the consumptive portion of Orr Ditch Decree water

rights and whether the State Water Board should stay its action in this proceeding until the Orr

Ditch Court determines whether to amend the decree to allow TROA to supersede the Truckee

River Agreement. (TMWA “Motion to Exclude Testimony, Expert Reports and Exhibits Related

to Issues Not Before the California State Water Resources Control Board” (July 15, 2010).) The

State Water Board gave TCID an opportunity to respond to the motions and TCID timely

responded. In a ruling dated July 27, 2010, the State Water Board denied TMWA’s motion.

At the conclusion of TCID’s case in chief, the parties supporting approval of the applications and

petitions objected to approximately 123 of TCID’s exhibits, often identifying multiple grounds for

objection. The Hearing Officer requested those joint parties to submit their objections in writing

and gave TCID an opportunity to respond in writing. On August 11, 2010, the Hearing Officer

issued a ruling that addressed general categories of objections raised, such as relevance,

hearsay, and authentication, and explained that if the State Water Board wished to rely on

contested evidence in making its decision, it would consider the joint parties’ objections and

TCID’s response in determining what weight, if any, to give the contested evidence.

To the extent that the State Water Board has identified any contested exhibits in this decision, it

has done so for the sole purpose of explaining TCID’s testimony and arguments, or for other

explication. We have not relied on the disputed exhibits as the sole or primary support for the

findings in this decision.

9.0 OTHER TERMS AND CONDITIONS This section describes additional terms and conditions, not described elsewhere in this decision,

that are applicable to the State Water Board’s approval of the change petitions and water right

applications.

the State Water Board to take official notice of matters that may be judicially noticed), and pursuant to Evidence Code section 452, subdivision (c) (authorizing judicial notice of the official acts of administrative agencies). (See also, SWRCB-7, p. 2-22, fn. 17 & p. 2-45, fn. 38 [describing Condition 12].)

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Accurate water accounting is important in order to prevent the unauthorized diversion of water,

to prevent injury, and to enable the State Water Board to determine the amount of water that

has been applied to beneficial use pursuant to Water Code section 1605. The State Water

Board will impose terms and conditions to ensure proper measurement and record keeping of

water diversion and use.

Applicant and Petitioners do not propose any reservoir construction. To ensure that adverse

effects that were not considered in this proceeding do not occur and to prevent the unauthorized

diversion of water, reservoir capacities will be limited in each permit, amended permit or

amended license to the existing capacities of the reservoirs discussed above in section 2.4. In

order to release flows that are not authorized for appropriation and to ensure the beneficial use

of water, each permit, amended permit, or amended license will contain a term requiring the

permittee or licensee to maintain existing outlet pipes in each reservoir owned or operated by

the permittee or licensee where water is authorized for diversion under that permit or license. In

addition, no water shall be diverted or rediverted by the permitee or licensee in any reservoir

where water is authorized for diversion under that permit or license, which is not owned or

operated by the permittee or licensee, if the reservoir’s outlet pipe is not in working order.

Applicant and Petitioners have requested that the permits and licenses include a term requiring

the diversion and use of water and reservoir operations be conducted in accordance with

TROA. We have included this term, but have modified it to also refer to the Settlement Act. In

addition, we have removed terms from Permit 11605 and License 10180 that were intended to

address the appropriation and use of water in the Truckee River basin pending the

implementation of a Congressionally-approved interstate compact. The California-Nevada

Interstate Compact, however, was not ratified by Congress. Instead, the Settlement Act will

establish an interstate allocation between California and Nevada once particular conditions are

met, including TROA taking effect. Certain permit terms and conditions adopted during the

interstate compact negotiations will become superfluous or obsolete once TROA and the

Settlement Act are effective and, thus, they have been removed.

In the State Water Board’s exercise of its continuing authority over public trust resources and

water right administration, Applicant and Petitioners will be required to notify the Deputy Director

for Water Rights of adjustments to operations or changes to TROA made in accordance with

Article Thirteen of TROA that will affect the diversion and use of water under the permits and

licenses. In addition, a term has been added providing that the diversion of water under each

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permit or license is subject to regulation by the TROA Administrator appointed to enforce the

terms of TROA to the extent such regulation is consistent with the terms and conditions of the

permit or license.

Applicant and Petitioners requested a common place of use for the applications, permit, and

licenses that were the subject of this hearing. The authorized place of use will include lands

within T13N, R17&18E; T14N, R16-18E; T15N, R16-18E; T16N, R16-18E; T17N, R15–20E,

24–31E; T18N, R14–21E, 24–31E; T19N, R14-31E; T20N, R18–32E; T21N, R18–26E, 29–32E;

T22N, R20–24E; T23N, R20–24E; T24N, R20–24E; T25N, R20–24E; T26N, R20–24E; T27N,

R20–24E; T28N, R23&24E, MDB&M, as shown on map No. 320-208-189A-1. A revised place

of use map (or maps) will be required prior to the issuance of any permits, amended permits, or

amended licenses and will include the authorized irrigated acreage as described below:

In each of the petitions and applications, Applicant and Petitioners requested that irrigation use

continue in the existing place of use as shown on Map No. 320-419-156, dated December 17,

1953. The referenced map is a general map for Stampede Reservoir (Application 15673),

which shows a net irrigated acreage for the Truckee Meadows area of 26,800 acres and a

gross acreage of 36,340 acres. Consistent with the EIS/EIR, the maximum existing irrigated

acreage will not be expanded. TheThus, we have construed the applications and petitions as

seeking the existing net irrigated acreage amount of 26,800 acres in the Truckee Meadows area

and we approve that quantity in Permit 11605, License 4196, License 10180, and permits

issued pursuant to Application 31487 and Application 31488. License 3723, however, currently

authorizes 29,000 acres of net irrigated acreage in the Truckee Meadows area and this amount

will remain unchanged.

Therefore, the maximum area irrigated in any one year under Permit 11605, License 3723,

License 4196, License 10180, and permits issued pursuant to Application 31487 and

Application 31488, shall not exceed a total of 96,800 net acres within a total gross area of

143,480 acres as follows:

Truckee Meadows - 26,800 net acres within a gross area of 36,340 acres in the vicinity of Reno, Nevada, within lands described as follows:

T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E, and

Newlands Project - 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows:

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T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E, all within MDB&M.

The maximum area irrigated in any one year under License 3723 (Application 5169), License

4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006),

and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a

total of 99,000 net acres within a total gross area of 143,480 acres.

The maximum area irrigated in any one year under License 3723 (Application 5169) shall not

exceed the following:

Truckee Meadows - 29,000 acres in the vicinity of Reno, Nevada , within lands described

as follows:

T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; all within

MDB&M.

This will reduce the Truckee Meadows irrigated acreage in License 3723 from 29,000 acres to

26,800 acres.

Newlands Project - 70,000 net acres within a gross area of 107,140 acres in the vicinity

of Fallon, Nevada, within lands described as follows:

T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N,

R24E-R31E; all within MDB&M.

The State Water Board will require a total combined storage limit for the three reservoirs in the

Little Truckee River watershed in which water may be collected to storage to ensure that

adverse effects do not occur that were not considered in this proceeding and to prevent the

unauthorized diversion of water. The total quantity of water collected to storage at

Independence Lake, Stampede Reservoir, and Boca Reservoir under Application 31487,

License 2607 (Application 9267),4950 License 3723 (Application 5169), License 4196 (Application

9247), Permit 11605 (Application 15673), and Permit 18320 (Application 26273) shall not

exceed a total of 284,850 afa.5051

4950 License 2607 is for power use at Independence Lake. 5051 This amount is less than the total combined capacities of Independence Lake, Stampede Reservoir, and Boca Reservoir because existing License 3723 (Application 5169) allows 40,850 acre-feet of water per annum to be

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Application 31487 and Permit 11605 include direct diversion at Stampede Reservoir.

Independence Lake and Boca Reservoir are also included as points of diversion. Because

direct diversion is not currently authorized under existing licenses at Independence Lake and

Boca Reservoir and the Applicant and Petitioners do not propose any construction, such as

pipelines to deliver the water for direct diversion from the reservoirs, we do not construe the

applications and petitions as requesting direct diversion at Independence Lake or Boca

Reservoir. Direct diversion, therefore, is limited to Stampede Reservoir.

For the reasons discussed in section 6.4 for the permit issued pursuant to Application 31487,

amended Permit 11605 will include a maximum simultaneous rate of direct diversion of 350 cfs

for water rights at Stampede Reservoir and will also contain a term which states that the

equivalent of the authorized continuous flow allowance for any 30-day period may be directly

diverted at Stampede Reservoir in a shorter time, provided there is no interference with other

rights and instream beneficial uses, and provided further that all terms and conditions protecting

instream beneficial uses are observed.

The change petitions and applications request Incidental Power use at points of rediversion

listed in Table C of this decision. Incidental Power is a non-consumptive use and the water

shall be returned to the source. The permits, amended permit, and amended licenses issued by

this decision will include a modified term 111, which includes locations where water is returned

to the river. The Applicant and Petitioners describe these locations in App./Pet. Joint-23

through 28 as follows:

*Stampede Powerhouse Return: Little Truckee River: By California Coordinate System of 1983, Zone 2, North 2,303,127 feet and East 7,096,674 feet. Farad Powerhouse Return: Truckee River: By California Coordinate System of 1983, Zone 2, North 2,284,919 feet and East 7,117,723 feet. Fleish Powerhouse Return: Truckee River: By Nevada Coordinate System of 1983, West Zone, North 14,848,874 feet and East 2,226,837 feet.

collected to storage in Boca Reservoir. (USBR-1, p. 2.) The capacity of Boca Reservoir, however, is cited as 41,100 acre-feet. (USBR-7, Table 1.)

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Verdi Powerhouse Return: Truckee River: Nevada Coordinate System of 1983, West Zone, North 14,864,373 feet and

East 2,230,562 feet. Washoe Powerhouse Return: Truckee River: Nevada Coordinate System of 1983,

West Zone, North 14,857,794 feet and East 2,243,430 feet. *Not included in the permit issued pursuant to Application 31488 or License 10180, which do not include Incidental Power at the Stampede powerhouse.

The change petitions and applications request Municipal use as a common purpose of use. The

Legislature has found and declared the conservation and efficient use of urban water supplies

are of statewide concern. (Wat. Code, § 10610.2, subd. (a).) Thus, we find it is in the public

interest, as a condition of our approval, to impose a modified version of Term 29A, requiring an

urban water supplier to prepare an Urban Water Management Plan or a plan authorized under

Nevada law that contains similar information.

10.0 CONCLUSION For the reasons discussed herein, the change petitions and applications are conditionally

approved.

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ORDER

IT IS HEREBY ORDERED THAT Applications 31487 and 31488 be approved and permits

issued subject to prior rights and subject to the following terms and conditions; and petitions to

amend Permit 11605 (Application 15673), and Licenses 3723 (Application 5169), 4196

(Application 9247), and 10180 (Application 18006) be approved subject to the following terms

and conditions. Permit 11605 and Licenses 3723, 4196, and 10180 shall be replaced with

amended permit and licenses that will contain the terms, conditions, and changes specified

herein and all current terms and conditions set forth in the original permit and licenses and

applicable subsequent decisions and orders.

The following changes are not effective, and the permits, amended permit, and amended

licenses will not be issued, until the conditions required for the Truckee River Operating

Agreement (TROA) to enter into effect have been satisfied and the Applicant and Petitioners

notify the Deputy Director for Water Rights, in writing, that those conditions have been satisfied.

Prior to issuance of any permits, amended permit, or amended licenses, permittee/licensees

shall submit a final project map that meets the requirements of California Code of Regulations,

title 23, chapter 2, article 7. The points of diversion and points of rediversion and their

coordinates must be shown on the map. The numbering scheme for the points of diversion and

points of rediversion are shown in Tables A and B of this decision. The map must also show the

sections within the township and range where the place of use boundary is irregular and does

not follow township and range lines.

Applications 31487, 31488, Permit 11605, Licenses 3723, 4196, 10180:

1. The authorized purposes of use are Municipal, Domestic, Industrial, Irrigation,

Stockwatering, Fish Culture, Water Quality, Recreational, Fish and Wildlife Preservation and

Enhancement, and Incidental Power.

2. Municipal, Domestic, Industrial, Stockwatering, Fish Culture, Water Quality, Recreational,

and Fish and Wildlife Preservation and Enhancement uses are authorized within lands

described as follows:

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T13N, R17E-R18E; T14N, R16E-R18E; T15N, R16E-R18E; T16N, R16E-R18E; T17N, R15E-R20E; T17N, R24E-R31E; T18N, R14E-R21E; T18N, R24E-R31E; T19N, R14E-R31E; T20N, R18E-R32E; T21N, R18E-R26E; T21N, R29E-R32E; T22N-T27N, R20E-R24E and T28N, R23E-R24E, all within MDB&M,

Irrigation use is authorized as follows:

The maximum area irrigated in any one year under License 3723 (Application 5169),

License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180

(Application 18006), and permits issued pursuant to Application 31487 and Application

31488, shall not exceed a total of 96,80099,000 net acres within a total gross area of

143,480 acres as follows:

The maximum area irrigated in any one year under License 3723 (Application 5169) shall

not exceed the following:

Truckee Meadows - 29,000 net acres in the vicinity of Reno, Nevada, within lands

described as follows:

T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E, and

Newlands Project - 70,000 net acres within a gross area of 107,140 acres in the vicinity

of Fallon, Nevada, within lands described as follows:

T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E;

T20N, R24E-R31E, all within MDB&M.

The maximum area irrigated in any one year under License 4196 (Application 9247), Permit

11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant

to Application 31487 and Application 31488, shall not exceed a total of 96,800 net acres

within a total gross area of 143,480 acres as follows:

Truckee Meadows - 26,800 net acres within a gross area of 36,340 acres in the vicinity

of Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E, and

Newlands Project - 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows:

T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E, all within MDB&M.

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Incidental Power use is authorized at power plants shown in Table C; except that Incidental

Power at the Stampede powerhouse is not included in the permit issued pursuant to

Application 31488 and License 10180 (Application 18006).

The place of use approved by this decision shall be shown on a map(s) submitted to, and

subject to approval by, the Deputy Director of Water Rights.

3. Water diverted for Incidental Power use under this permit/license is for nonconsumptive use

and is to be released at the following locations:

*Stampede Powerhouse Return: Little Truckee River: By California Coordinate System of 1983, Zone 2, North 2,303,127 feet and East 7,096,674 feet. Farad Powerhouse Return: Truckee River: By California Coordinate System of 1983, Zone 2, North 2,284,919 feet and East 7,117,723 feet. Fleish Powerhouse Return: Truckee River: By Nevada Coordinate System of 1983, West Zone, North 14,848,874 feet and East 2,226,837 feet. Verdi Powerhouse Return: Truckee River: Nevada Coordinate System of 1983,

West Zone, North 14,864,373 feet and East 2,230,562 feet. Washoe Powerhouse Return: Truckee River: Nevada Coordinate System of 1983,

West Zone, North 14,857,794 feet and East 2,243,430 feet. *Not included in the permit issued pursuant to Application 31488 or License 10180, which do not include Incidental Power at Stampede powerhouse.

4. The numbering for the points of diversion, points of rediversion, and places of storage for

License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605

(Application 15673), License 10180 (Application 18006), and permits issued pursuant to

Application 31487 and Application 31488, are shown on map [MAP NUMBER], dated

[DATE], filed with the State Water Board.

5. Permittee/licensee shall consult with the Division of Water Rights as to whether

permittee/licensee is an “urban water supplier” as defined in California Water Code section

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10617. If permittee/licensee is an urban water supplier, then within one year from issuance

of the permit, amended permit, or amended license, permittee/licensee shall submit to the

State Water Board its Urban Water Management Plan as prepared and adopted in

conformance with California Water Code section 10610, et seq., or a comparable urban

water management plan, as may be authorized under Nevada law that contains similar

information. The plan may be supplemented by any additional information that may be

required by the State Water Board.

All cost-effective measures identified in the Urban Water Management Plan or comparable

plan and any supplements thereto shall be implemented in accordance with the schedule for

implementation found therein.

6. To ensure that the bypass flow requirement imposed as a condition of water quality

certification for the Farad Diversion Dam Replacement Project is met, permittee/licensee

shall bypass a minimum flow of 150 cfs in the bypass reach below the Farad diversion dam,

or total Truckee River flow immediately upstream of the diversion dam, whichever is less, in

the operation area, or applicable bypass flow as it may be revised in the water quality

certification for the project.

No diversion shall be allowed at the points of diversion or rediversion authorized by this

permit/license unless the applicable bypass flows are met.

5. 7. Due to the permittee’s/licensee’s ability to exchange water among water right holders

under TROA, beneficial uses for water shall only be credited to the permit or license under

which the water was originally diverted.

6. 8. Diversions under this permit/license shall be subject to the interstate allocation authorized

under the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618

(Nov. 16, 1990), Tit. II, 104 Stat. 3289) when the allocation becomes effective.

7. 9. All diversions, storage, use of water and operations under this permit/license shall be in

accordance with the provisions contained in this permit/license, the Truckee-Carson-

Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104

Stat. 3289) (Settlement Act), and TROA, which is on file with the State Water Board. The

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Board retains jurisdiction for the purpose of amending the terms of this permit/license to

conform to the terms of TROA and the Settlement Act.

8. 10. Diversion of water under this permit/license is subject to regulation by the TROA

Administrator appointed to enforce the terms and conditions of the TROA to the extent such

regulation is not inconsistent with the terms and conditions of this permit/license.

9. 11. Permittee/licensee shall notify the Deputy Director for Water Rights, in writing, of any

adjustments to operations or changes to TROA made in accordance with Article Thirteen of

TROA that will affect the diversion and use of water under this permit/license.

IT IS FURTHER ORDERED that the permit issued pursuant to Application 31487 include the

following additional terms and conditions:

10. 12. Mandatory permit terms 6, 10, 11, 12, 13, 14, 15, and 63 (A through H) and standard

permit terms 22, 30, 69, 203, and M.

11. 13. The points of diversion, places of storage, sources of water, and points of rediversion

are as follows:

a. Points of diversion and places of storage: Permittee is authorized to divert and store

water from Independence Creek and Little Truckee River at the points of diversion and

places of storage identified within Table B of this Decision;

b. Points of Rediversion: Permittee is authorized to re-divert water at the points of

rediversion identified within Tables A and B of this Decision.

c. Sources:

(1) Independence Creek tributary to Little Truckee River thence Truckee River within the

County of Nevada.

(2) Little Truckee River tributary to Truckee River thence Pyramid Lake within the

Counties of Sierra and Nevada.

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12. 14. The amounts of water authorized to be appropriated under Application 31487 are as

follows:

a. The water appropriated shall be limited to the quantity that can be beneficially used and

shall not exceed 350 cubic feet per second by direct diversion at Stampede Reservoir

and 226,500 acre-feet per annum by storage at Independence Lake, Stampede

Reservoir, and Boca Reservoir from January 1 to December 31 of each year.

The total amount of water to be taken from the source (direct diversion plus collection to

storage) shall not exceed 226,500 acre-feet per year.

b. The total quantity of water collected to storage under this permit, Permit 11605

(Application 15673), and Permit 18320 (Application 26273) shall not exceed 226,500

acre-feet per year.

c. The total quantity of water collected to storage at Independence Lake, Stampede

Reservoir, and Boca Reservoir under this permit, License 3723 (Application 5169),

License 4196 (Application 9247), License 2607 (Application 9267), Permit 11605

(Application 15673), and Permit 18320 (Application 26273) shall not exceed a total of

284,850 acre-feet per year.

d. The capacities of Independence Lake, Stampede Reservoir, and Boca Reservoir

covered by this permit, License 3723 (Application 5169), License 4196 (Application

9247), License 2607 (Application 9267) Permit 11605 (Application 15673), and Permit

18320 (Application 26273) shall not exceed 17,500 acre-feet in Independence Lake,

226,500 acre-feet in Stampede Reservoir, and 41,100 acre-feet in Boca Reservoir.

e. The maximum simultaneous rate of direct diversion at Stampede Reservoir under this

permit, Permit 11605 (Application 15673), and Permit 18320 (Application 26273) shall

not exceed 350 cfs.

f. The equivalent of the authorized continuous flow allowance for any 30-day period may

be directly diverted at Stampede Reservoir in a shorter time, provided there is no

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interference with other rights and instream beneficial uses, and provided further that all

terms and conditions protecting instream beneficial uses are observed.

13. 15. Construction work and complete application of the water to the authorized use shall be

prosecuted with reasonable diligence and be completed by December 31, 2022.

14. 16. Permittee shall measure and monitor amounts diverted, collected to storage, withdrawn

from storage and rediverted for beneficial use under this permit. The permittee shall submit

a plan for approval by the State Water Board that includes a description and location of the

measuring devices, frequency of data collection, the methods for recording and reporting

data to the State Water Board, and any calculations required to develop the records. The

plan shall identify how the permittee will ensure that the total cumulative amount of water

collected, stored and used at the reservoirs authorized under this permit will not exceed the

authorized amount under the permit. The plan shall also identify how the amounts collected

and beneficially used under all of the permits and licenses for coordinated reservoir storage

under TROA will be accounted for under the individual permits and licenses and any other

bases of right. The plan shall be submitted and approved by the Deputy Director for Water

Rights prior to diversion under this permit. Permittee shall implement the plan upon

approval. A record of such measurements shall be maintained by the permittee, and made

available to interested persons upon reasonable request. A copy of the records shall be

submitted to the State Water Board with the annual “Progress Report by Permittee.”

15. 17. To assure sufficient water flows in the Little Truckee River below Stampede Reservoir to

protect public fishery resources, bypasses or releases shall be made from Stampede

Reservoir into the Little Truckee River to maintain minimum flows therein as follows:

During Years of 60 and up to 130 percent normal predicted runoff, based on the official

federal-state cooperative April snow surveys and water supply forecasts for the Truckee

River watershed, (a) six cubic feet per second measured at a point one-quarter mile

downstream from Stampede Dam, and (b) twelve cubic feet per second measured at a

point near the confluence of the Little Truckee River with Boca Reservoir.

During years when the official predicted runoff for the Truckee River watershed is less

than 60 percent of normal, (a) six cubic feet per second measured at a point one-quarter

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mile downstream from Stampede Dam, and (b) six cubic feet per second measured at a

point near the confluence of the Little Truckee River with Boca Reservoir.

During years when the official predicted runoff for the Truckee River watershed is more

than 130 percent of normal, (a) eight cubic feet per second measured at a point

one-quarter mile downstream from Stampede Dam, and (b) sixteen cubic feet per

second measured at a point near the confluence of the Little Truckee River with Boca

Reservoir.

The flows to be maintained in the foregoing schedule shall become effective on May 1 of

each year and continue to April 30 of the following year.

No diversion shall be allowed at the Stampede Reservoir points of diversion or

rediversion authorized by this permit unless the applicable minimum instream flows are

metin this term are met for water collected to storage in Stampede Reservoir. This

condition does not require a bypass or release of water collected to storage in other

reservoirs and subsequently transferred to Stampede Reservoir. Reclamation shall

maintain an account of all water stored in Stampede Reservoir, and shall separately

account for water transferred to the reservoir from other reservoirs. The account shall

document when the transfer water is released from Stampede Reservoir storage for

beneficial use. Failure to document the transfer of water into and out of Stampede

Reservoir shall result in all water in the reservoir being subject to the bypass or release

criteria for Stampede Reservoir.

16. No water shall be rediverted at the Farad Diversion Dam, except in compliance with the

bypass flow requirement imposed as a condition of water quality certification for the Farad

Diversion Dam Replacement Project. Further, no water shall be rediverted at the Farad

Diversion Dam unless (1) permittee has submitted information to the Deputy Director for

Water Rights demonstrating that the permittee has acquired access to redivert water or

made arrangements with TMWA to divert water on permittee’s behalf, and (2) the Deputy

Director for Water Rights advises the permittee that it has made a satisfactory

demonstration.

17. 18. Permittee shall maintain the existing outlet pipespipe for Independence Lake, Stampede

Reservoir, and Boca Reservoir in proper working order. No water shall be diverted in

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Independence Lake, or diverted or rediverted in Boca Reservoir, under this permit if the

outlet pipe for the particular reservoir in which water is sought to be diverted or rediverted is

not in working order.

18. 19. Water stored in Independence Lake, Stampede Reservoir, and Boca Reservoir pursuant

to pre-1914 permits issued by the Nevada State Engineer under Nevada Law, with priority

dates before December 19, 1914, and recognized pursuant to the provisions of California

Water Code sections 1231 and 1232 shall not be considered as water stored pursuant to the

provisions of this Permit.

IT IS FURTHER ORDERED that the permit issued pursuant to Application 31488 include the

following additional terms and conditions:

19. 20. Mandatory permit terms 6, 10, 11, 12, 13, 14, 15, and 63 (A through H) and standard

permit terms 5i, 30, 69, 203, and M.

20. 21. The point of diversion, place of storage, source of water, and points of rediversion are as

follows:

a. Point of diversion and place of storage: Permittee is authorized to divert and store water

from Prosser Creek at a point of diversion and place of storage at Prosser Creek Dam,

within NW ¼ of SW ¼, of Section 30, T18N, R17E, MDBM; California Coordinate

System of 1983, Zone 2, North 2,269,206 feet and East 7,088,234 feet, POD(4).

b. Points of Rediversion: Permittee is authorized to re-divert water at the points of

rediversion identified within Table A of this Decision.

c. Source: Prosser Creek tributary to Truckee River thence Pyramid Lake within the County

of Nevada.

21. 22. The amounts of water authorized to be appropriated under Application 31488:

a. The water appropriated shall be limited to the quantity that can be beneficially used and

shall not exceed 30,000 acre-feet per annum to be collected from October 1 of each

year to August 10 of the succeeding year.

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b. The total quantity of water collected to storage at Prosser Creek Reservoir under this

permit and License 10180 (Application 18006) shall not exceed 30,000 acre-feet per

year.

c. The capacity of the reservoir covered by this permit and License 10180 (Application

18006) shall not exceed 29,800 acre-feet.

22. 23. Construction work and complete application of the water to the authorized use shall be

prosecuted with reasonable diligence and be completed by December 31, 2022.

23. 24. Permittee shall measure and monitor amounts diverted, collected to storage, withdrawn

from storage and rediverted for beneficial use under this permit. The permittee shall submit

a plan for approval by the State Water Board that includes a description and location of the

measuring devices, frequency of data collection, the methods for recording and reporting

data to the State Water Board, and any calculations required to develop the records. The

plan shall identify how the permittee will ensure that the total cumulative amount of water

collected, stored and used at Prosser Creek Reservoir will not exceed the authorized

amount under the permit. The plan shall also identify how the amounts collected and

beneficially used under all of the permits and licenses for coordinated reservoir storage

under TROA will be accounted for under the individual permits and licenses and any other

bases of right. The plan shall be submitted and approved by the Deputy Director for Water

Rights prior to diversion under this permit. Permittee shall implement the plan upon

approval. A record of such measurements shall be maintained by the permittee, and made

available to interested persons upon reasonable request. A copy of the records shall be

submitted to the State Water Board with the annual “Progress Report by Permittee.”

24. No water shall be rediverted at the Farad Diversion Dam, except in compliance with the

bypass flow requirement imposed as a condition of water quality certification for the Farad

Diversion Dam Replacement Project. Further, no water shall be rediverted at the Farad

Diversion Dam unless (1) permittee has submitted information to the Deputy Director for

Water Rights demonstrating that the permittee has acquired access to redivert water or

made arrangements with TMWA to divert water on permittee’s behalf, and (2) the Deputy

Director for Water Rights advises the permittee that it has made a satisfactory

demonstration.

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25. Permittee shall maintain the existing outlet pipe for Prosser Creek Reservoir in proper

working order.

26. Water stored in Prosser Creek Reservoir pursuant to pre-1914 permits issued by the

Nevada State Engineer under Nevada Law, and recognized pursuant to the provisions of

California Water Code sections 1231 and 1232 shall not be considered as water stored

pursuant to the provisions of this permit.

IT IS FURTHER ORDERED that Permit 11605 (Application 15673) shall be amended by adding

the following additional terms and conditions:

27. Permit 11605 (Application 15673) is subject to mandatory permit terms 6, 10, 11, 12, 13, 14,

15, and 63 (A through H) and standard permit terms 22, 30, 69, and M.

28. The purposes of use authorized by the State Water Board’s March 22, 1971 Order

amending Permit 11605 shall be modified as follows:

Domestic, Municipal, Industrial, Irrigation, Stockwatering, Flood Control, Fish Culture, Water Quality, Recreational, Fish and Wildlife Preservation and Enhancement, and Incidental Power

29. The points of diversion, places of storage, sources of water, and points of rediversion are as

follows:

a. Points of diversion and places of storage: Permittee is authorized to divert and store

water from Independence Creek and Little Truckee River at the points of diversion and

places of storage identified within Table B of this Decision;

b. Points of Rediversion: Permittee is authorized to re-divert water at the points of

rediversion identified in Tables A and B of this Decision.

c. Sources:

(1) Independence Creek tributary to Little Truckee River thence Truckee River within the

County of Nevada.

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(2) Little Truckee River tributary to Truckee River thence Pyramid Lake within the

Counties of Sierra and Nevada.

30. Terms 1 and 2 of Permit 11605 (Application 15673) shall be deleted and replaced with the

following terms:

a. The water appropriated shall be limited to the quantity which can be beneficially used

and shall not exceed 350 cubic feet per second (cfs) by direct diversion at Stampede

Reservoir to be diverted from April 1 to November 1 of each year and 126,000 acre-feet

per annum by storage to be collected from January 1 to December 31 of each year.

The total amount of water to be taken from the source (direct diversion plus collection to

storage) shall not exceed 126,000 acre-feet per year.

b. The total quantity of water collected to storage under this permit, Permit 18320

(Application 26273) and the permit issued pursuant to Application 31487 shall not

exceed 226,500 acre-feet per annum.

c. The total quantity of water collected to storage at Independence Lake, Stampede

Reservoir, and Boca Reservoir under this permit, License 3723 (Application 5169),

License 4196 (Application 9247), License 2607 (Application 9267), Permit 18320

(Application 26273), and permit issued pursuant to Application 31487 shall not exceed a

total of 284,850 acre-feet per year.

d. The capacities of Independence Lake, Stampede Reservoir, and Boca Reservoir

covered by this permit, License 3723 (Application 5169), License 4196 (Application

9247), License 2607 (Application 9267), Permit 18320 (Application 26273), and permit

issued pursuant to Application 31487 shall not exceed 17,500 acre-feet in Independence

Lake, 226,500 acre-feet in Stampede Reservoir, and 41,100 acre-feet in Boca Reservoir.

e. The maximum simultaneous rate of direct diversion at Stampede Reservoir under this

permit, Permit 18320 (Application 26273), and the permit issued pursuant to Application

31487 shall not exceed 350 cfs.

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f. The equivalent of the authorized continuous flow allowance for any 30-day period may

be directly diverted at Stampede Reservoir in a shorter time, provided there is no

interference with other rights and instream beneficial uses, and provided further that all

terms and conditions protecting instream beneficial uses are observed.

31. Permittee shall measure and monitor amounts diverted, collected to storage, withdrawn from

storage and rediverted for beneficial use under this permit. The permittee shall submit a

plan for approval by the State Water Board that includes a description and location of the

measuring devices, frequency of data collection, the methods for recording and reporting

data to the State Water Board, and any calculations required to develop the records. The

plan shall identify how the permittee will ensure that the total cumulative amount of water

collected, stored and used at the reservoirs authorized under this permit will not exceed the

authorized amount under the permit. The plan shall also identify how the amounts collected

and beneficially used under all of the permits and licenses for coordinated reservoir storage

under TROA will be accounted for under the individual permits and licenses and any other

bases of right. The plan shall be submitted and approved by the Deputy Director for Water

Rights prior to diversion under this permit. Permittee shall implement the plan upon

approval. A record of such measurements shall be maintained by the permittee, and made

available to interested persons upon reasonable request. A copy of the records shall be

submitted to the State Water Board with the annual “Progress Report by Permittee.”

32. The third sentence in Term 4 of Permit 11605 (Application 15673) shall be modified as

follows:…The appropriative rights hereby reserved for use in California shall be deemed to

have the same date of priority as any rights which may be consummated pursuant to

Applications 15672 and 15673. Appropriative rights acquired to water of the Truckee River

system in addition to the appropriative rights described above shall be junior in priority

thereto.Terms 3, 4, and 8 of Permit 11605 (Application 15673) shall be deleted.

33. Term 5 of Permit 11605 (Application 15673) shall be modified as follows:

Permittee shall keep adequate records of (1) the amounts of water beneficially used for the

various purposes for which the water has been appropriated, (2) the amount of water stored

in each reservoir (Independence Lake, Stampede Reservoir and Boca Reservoir) in lieu of

storage at other existing reservoirs, and (3) the amount of water stored in each reservoir

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(Independence Lake, Stampede Reservoir and Boca Reservoir) in addition to the amount

described in (2) of this condition. Copies of such records shall be furnished annually to the

State Water Board together with the annual progress reports.

34. Term 6 of Permit 11605 (Application 15673) shall be modified as follows:

To assure sufficient water flows in the Little Truckee River below Stampede Reservoir to

protect public fishery resources, bypasses or releases shall be made from Stampede

Reservoir said reservoir into the Little Truckee River to maintain minimum flows therein as

follows:

During Years of 60 and up to 130 percent normal predicted runoff, based on the official

federal-state cooperative April snow surveys and water supply forecasts for the Truckee

River watershed, (a) six cubic feet per second measured at a point one-quarter mile

downstream from Stampede Dam, and (b) twelve cubic feet per second measured at a point

near the confluence of the Little Truckee River with Boca Reservoir.

During years when the official predicted runoff for the Truckee River watershed is less than

60 percent of normal, (a) six cubic feet per second measured at a point one-quarter mile

downstream from Stampede Dam, and (b) six cubic feet per second measured at a point

near the confluence of the Little Truckee River with Boca Reservoir.

During years when the official predicted runoff for the Truckee River watershed is more than

130 percent of normal, (a) eight cubic feet per second measured at a point one-quarter mile

downstream from Stampede Dam, and (b) sixteen cubic feet per second measured at a

point near the confluence of the Little Truckee River with Boca Reservoir.

The flows to be maintained in the foregoing schedule shall become effective on May 1 of

each year and continue to April 30 of the following year.

No diversion shall be allowed at the Stampede Reservoir points of diversion or rediversion

authorized by this permit unless the applicable minimum instream flows are metin this term

are met for water collected to storage in Stampede Reservoir. This condition does not

require a bypass or release of water collected to storage in other reservoirs and

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subsequently transferred to Stampede Reservoir. Reclamation shall maintain an account of

all water stored in Stampede Reservoir, and shall separately account for water transferred to

the reservoir from other reservoirs. The account shall document when the transfer water is

released from Stampede Reservoir storage for beneficial use. Failure to document the

transfer of water into and out of Stampede Reservoir shall result in all water in the reservoir

being subject to the bypass or release criteria for Stampede Reservoir.

35. No water shall be rediverted at the Farad Diversion Dam, except in compliance with the

bypass flow requirement imposed as a condition of water quality certification for the Farad

Diversion Dam Replacement Project. Further, no water shall be rediverted at the Farad

Diversion Dam unless (1) permittee has submitted information to the Deputy Director for

Water Rights demonstrating that the permittee has acquired access to redivert water or

made arrangements with TMWA to divert water on permittee’s behalf, and (2) the Deputy

Director for Water Rights advises the permittee that it has made a satisfactory

demonstration.

36. 35. Terms 9, 13, 14, 15, and 16 of Permit 11605 shall be deleted as they are duplicative of

mandatory permit terms 6, 10, 12, and 13 (A, B, D, and E).

37. 36. Water stored in Independence Lake, Stampede Reservoir, and Boca Reservoir pursuant

to pre-1914 permits issued by the Nevada State Engineer under Nevada Law, with priority

dates before December 19, 1914, and recognized pursuant to the provisions of California

Water Code sections 1231 and 1232 shall not be considered as water stored pursuant to the

provisions of this permit.

38. 37. Permittee shall maintain the existing outlet pipespipe for Independence Lake, Stampede

Reservoir, and Boca Reservoir in proper working order. No water shall be diverted in

Independence Lake, or diverted or rediverted in Boca Reservoir, under this permit if the

outlet pipe for the particular reservoir in which water is sought to be diverted or rediverted is

not in working order.

39. 38. This permit is subject to the rights of persons diverting water for reasonable beneficial

use under valid and properly exercised riparian and pre- and post-1914 appropriative claims

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of right, and other claims of right, that have a priority superior to the priority of Application

15673.

IT IS FURTHER ORDERED that License 3723 (Application 5169) and License 4196

(Application 9247) shall be amended subject to the following additional terms and conditions:

License 3723 (Application 5169)

40. 39. The amount of water to which this right is entitled and hereby confirmed is limited to the

amount actually beneficially used for the stated purposes and shall not exceed forty

thousand eight hundred fifty (40,850) acre-feet per annum to be collected in Independence

Lake, Stampede Reservoir, and Boca Reservoir from October 1 of each year to July 1 of the

succeeding year. The maximum withdrawal in any one year shall not exceed 40,850 acre-

feet.

41. 40. This license is subject to the rights of persons diverting water for reasonable beneficial

use under valid and properly exercised riparian and pre- and post-1914 appropriative claims

of right, and other claims of right, that have a priority superior to the priority of Application

5169.

42. No water shall be rediverted at the Farad Diversion Dam, except in compliance with the

bypass flow requirement imposed as a condition of water quality certification for the Farad

Diversion Dam Replacement Project. Further, no water shall be rediverted at the Farad

Diversion Dam unless (1) licensee has submitted information to the Deputy Director for

Water Rights demonstrating that the licensee has acquired access to redivert water or made

arrangements with TMWA to divert water on licensee’s behalf, and (2) the Deputy Director

for Water Rights advises the licensee that it has made a satisfactory demonstration.

43. Licensee shall maintain the existing outlet pipe for Boca Reservoir in proper working order.

No water shall be diverted in Independence Lake, or diverted or rediverted in Stampede

Reservoir, under this license if the outlet pipe for the particular reservoir in which water is

sought to be diverted or rediverted is not in working order.

License 4196 (Application 9247)

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44. 41. The amount of water to which this right is entitled and hereby confirmed is limited to the

amount actually beneficially used for the stated purposes and shall not exceed seventeen

thousand five hundred (17,500) acre-feet per annum to be collected in Independence Lake,

Stampede Reservoir, and Boca Reservoir from December 1 of each year to July 1 of the

succeeding year. The maximum withdrawal in any one year shall not exceed 17,500 acre-

feet.

45. 42. Water can be initially diverted to storage under this license at Stampede Dam and Boca

Dam only at times when flow to an equivalent volume is available at Independence Dam as

verified by the TROA Administrator.

46. To ensure that the bypass flow requirement imposed as a condition of water quality

certification for the Farad Diversion Dam Replacement Project is met, no water shall be

rediverted at the Farad Diversion Dam unless licensee bypasses a minimum flow of 150 cfs

in the bypass reach below the Farad diversion dam, or total Truckee River flow immediately

upstream of the diversion dam, whichever is less, in the operation area, or applicable

bypass flow as it may be revised in the water quality certification for the project.

47. Licensee shall maintain the existing outlet pipe for Independence Lake in proper working

order. No water shall be diverted or rediverted in Stampede Reservoir or in Boca Reservoir

under this license if the outlet pipe for the particular reservoir in which water is sought to be

diverted or rediverted is not in working order.

License 3723 (Application 5169) and License 4196 (Application 9247)

48. 43. Licenses 3723 (Application 5169) and 4196 (Application 9247) are subject to mandatory

licensing terms shown in Table D and standard license terms 5i, 22, 30, 69 and M1.

49. 44. The maximum amount of water collected to storage in Independence Lake, Stampede

Reservoir, and Boca Reservoir under License 3723 (Application 5169), License 4196

(Application 9247), License 2607 (Application 9267), Permit 11605 (Application 15673),

Permit 18320 (Application 26273), and permit issued pursuant to Application 31487 shall not

exceed a total of 284,850 acre-feet per year.

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50. 45. The capacities of Independence Lake, Stampede Reservoir, and Boca Reservoir

covered by License 3723 (Application 5169), License 4196 (Application 9247), License 2607

(Application 9267), Permit 11605 (Application 15673), Permit 18320 (Application 26273),

and permit issued pursuant to Application 31487 shall not exceed 226,500 acre-feet in

Stampede Reservoir, 17,500 acre-feet in Independence Lake, and 41,100 acre-feet in Boca

Reservoir

51. 46. The points of diversion, places of storage, sources of water, and points of rediversion

are as follows:

a. Points of diversion and places of storage: Licensee is authorized to divert and store

water from Independence Creek and Little Truckee River at the points of diversion and

places of storage identified within Table B of this Decision;

b. Points of Rediversion: Licensee is authorized to re-divert water at the points of

rediversion identified in Tables A and B of this Decision.

c. Sources:

(1) Independence Creek tributary to Little Truckee River thence Truckee River within the

County of Nevada.

(2) Little Truckee River tributary to Truckee River thence Pyramid Lake within the

Counties of Sierra and Nevada.

52. 47. Licensee shall measure and monitor amounts diverted, collected to storage, withdrawn

from storage and rediverted for beneficial use under this permit/license. The licensee shall

submit a plan for approval by the State Water Board that includes a description and location

of the measuring devices, frequency of data collection, the methods for recording and

reporting data to the State Water Board, and any calculations required to develop the

records. The plan shall identify how the licensee will ensure that the total cumulative

amount of water collected, stored and used at the reservoirs authorized under this license

will not exceed the authorized amount under the license. The plan shall also identify how

the amounts collected and beneficially used under all of the permits and licenses for

coordinated reservoir storage under TROA will be accounted for under the individual permits

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and licenses and any other bases of right. The plan shall be submitted and approved by the

Deputy Director for Water Rights prior to diversion under this license. Licensee shall

implement the plan upon approval. A record of such measurements shall be maintained by

the licensee, and made available to interested persons upon reasonable request. A copy of

the records shall be submitted to the State Water Board with the annual “Report of

Licensee.”

53. 48. To assure sufficient water flows in the Little Truckee River below Stampede Reservoir to

protect public fishery resources, bypasses or releases shall be made from Stampede

Reservoir into the Little Truckee River to maintain minimum flows therein as follows:

During Years of 60 and up to 130 percent normal predicted runoff, based on the official

federal-state cooperative April snow surveys and water supply forecasts for the Truckee

River watershed, (a) six cubic feet per second measured at a point one-quarter mile

downstream from Stampede Dam, and (b) twelve cubic feet per second measured at a

point near the confluence of the Little Truckee River with Boca Reservoir.

During years when the official predicted runoff for the Truckee River watershed is less

than 60 percent of normal, (a) six cubic feet per second measured at a point one-quarter

mile downstream from Stampede Dam, and (b) six cubic feet per second measured at a

point near the confluence of the Little Truckee River with Boca Reservoir.

During years when the official predicted runoff for the Truckee River watershed is more

than 130 percent of normal, (a) eight cubic feet per second measured at a point

one-quarter mile downstream from Stampede Dam, and (b) sixteen cubic feet per

second measured at a point near the confluence of the Little Truckee River with Boca

Reservoir.

The flows to be maintained in the foregoing schedule shall become effective on May 1 of

each year and continue to April 30 of the following year.

No diversion shall be allowed at the Stampede Reservoir points of diversion or

rediversion authorized by this license unless the applicable minimum instream flows are

metin this term are met for water collected to storage in Stampede Reservoir. This

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condition does not require a bypass or release of water collected to storage in other

reservoirs and subsequently transferred to Stampede Reservoir.

54. 49. Water stored in Independence Lake, Stampede Reservoir, and Boca Reservoir pursuant

to pre-1914 permits issued by the Nevada State Engineer under Nevada Law, with priority

dates before December 19, 1914, and recognized pursuant to the provisions of California

Water Code sections 1231 and 1232 shall not be considered as water stored pursuant to the

provisions of this license.

50. Licensee shall maintain the existing outlet pipes in Independence Lake, Stampede

Reservoir, and Boca Reservoir in proper working order.

IT IS FURTHER ORDERED that License 10180 (Application 18006) shall be amended subject

to the following additional terms and conditions:

55. 51. License 10180 (Application 18006) is subject to mandatory licensing terms shown in

Table D and standard license terms 5i, 30, 69 and M1.

56. 52. The points of diversion, places of storage, sources of water, and points of rediversion

are as follows:

a. Point of diversion and place of storage: Licensee is authorized to divert and store water

from Prosser Creek at a point of diversion and place of storage at Prosser Creek Dam,

within NW ¼ of SW ¼, of Section 30, T18N, R17E, MDBM; California Coordinate

System of 1983, Zone 2, North 2,269,206 feet and East 7,088,234 feet, POD(4).

b. Points of Rediversion: Licensee is authorized to re-divert water at the points of

rediversion identified within Table A of this Decision.

c. Source: Prosser Creek tributary to Truckee River thence Pyramid Lake within the County

of Nevada.

57. 53. The amount of water to which this right is entitled and hereby confirmed is limited to the

amount actually beneficially used for the stated purposes and shall not exceed thirty

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thousand (30,000) acre-feet per annum, to be collected from April 10 to August 10 of each

year. The maximum withdrawal in any one year shall not exceed 20,162 acre-feet.

58. 54. The maximum amount of water collected to storage in Prosser Creek Reservoir under

this license and the permit issued pursuant to Application 31488 shall not exceed 30,000

acre-feet per year.

59. 55. The capacity of Prosser Creek Reservoir covered by this license and the permit issued

pursuant to Application 31488 shall not exceed 29,800 acre-feet.

60. 56. Existing License term on page 1 of the License will be modified as follows: The

appropriative rights consummated pursuant to Application 18006 This license shall have an

effective priority junior and subject to those rights reserved to California water users to

appropriate unappropriated waters of the Little Truckee River as set forth in section 5976 of

part 8, division 2 of the Water Code, the allocations of water of the Truckee River and its

tributaries.

61. 57. Licensee shall measure and monitor amounts diverted, collected to storage, withdrawn

from storage and rediverted for beneficial use under this license. The licensee shall submit

a plan for approval by the State Water Board that includes a description and location of the

measuring devices, frequency of data collection, the methods for recording and reporting

data to the State Water Board, and any calculations required to develop the records. The

plan shall identify how the licensee will ensure that the total cumulative amount of water

collected, stored and used at Prosser Creek Reservoir will not exceed the authorized

amount under the license. The plan shall also identify how the amounts collected and

beneficially used under all of the permits and licenses for coordinated reservoir storage

under TROA will be accounted for under the individual permits and licenses and any other

bases of right. The plan shall be submitted and approved by the Deputy Director for Water

Rights prior to diversion under this license. Licensee shall implement the plan upon

approval. A record of such measurements shall be maintained by the licensee, and made

available to interested persons upon reasonable request. A copy of the records shall be

submitted to the State Water Board with the annual “Report of Licensee.”

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62. 58. Water stored in Prosser Creek Reservoir pursuant to pre-1914 permits issued by the

Nevada State Engineer under Nevada Law, and recognized pursuant to the provisions of

California Water Code sections 1231 and 1232 shall not be considered as water stored

pursuant to the provisions of this license.

63. No water shall be rediverted at the Farad Diversion Dam, except in compliance with the

bypass flow requirement imposed as a condition of water quality certification for the Farad

Diversion Dam Replacement Project. Further, no water shall be rediverted at the Farad

Diversion Dam unless (1) licensee has submitted information to the Deputy Director for

Water Rights demonstrating that the licensee has acquired access to redivert water or made

arrangements with Truckee Meadows Water Authority to divert water on licensee’s behalf,

and (2) the Deputy Director for Water Rights advises the licensee that it has made a

satisfactory demonstration.

64. 59. Licensee shall maintain the existing outlet pipe in Prosser Creek Reservoir in proper

working order.

65. The following terms shall be eliminated from License 10180 (Application 18006):

60. The following term shall be eliminated from License 10180 (Application 18006): The

licensee shall operate Prosser Creek Reservoir in coordination with releases of water from

Lake Tahoe in the Truckee River in accordance with the operation schedule contained in the

U.S. Bureau of Reclamation, Prosser Creek Reservoir Operation Study, January 14, 1958,

and amended July 1, 1958, on file with the Board, or in accordance with any modified

operation schedule that may be submitted by the licensee, and approved by the State Water

Resources Control Board after notice and opportunity to be heard has been given to all

parties and other interested persons in this proceeding.

If and when the interstate compact covering the distribution and use of waters of the

Truckee and Carson Rivers is consented to by congress, the operation of Prosser Reservoir

shall be in conformity with such compact and the terms and conditions set forth in this

license which are in conflict therewith shall not apply.

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Insofar as the appropriation of water under this license is concerned, Prosser Creek

Reservoir shall not be operated by the licensee separately or in conjunction with other

reservoirs of the Truckee River Basin so as to prevent in the future such consumptive

beneficial uses of water as are presently being made in the California portion of said basin

and such consumptive beneficial uses as are presently being made of water diverted from

Little Truckee River to Sierra Valley, Echo Lake to the American River Basin, and Marlette

Lake to Virginia City, Nevada; provided that the foregoing is a condition imposed upon the

operation of said reservoir under this license and is not to be construed as a definition of the

legality of any water right.

Permittee shall keep adequate records of:

A. The respective amounts of water impounded in and released from Prosser Creek

Reservoir solely for the purpose of exchanging water released from storage at Lake

Tahoe for the maintenance of fish life.

B. The respective amount of waters impounded in and released from Prosser Creek

Reservoir in addition to the foregoing.

C. Releases of stored waters from Lake Tahoe in fulfillment of the approved operation

schedule in condition 1 above.

CERTIFICATION The undersigned Clerk to the Board does hereby certify that the foregoing is a full, true, and correct copy of a decision duly and regularly adopted at a meeting of the State Water Board held on XXXXXXX 2012. AYE:

NO:

ABSENT:

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ABSTAIN: DRAFT Jeanine Townsend Clerk to the Board

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Table A – Location of common Points of Rediversion (POR) for Amended License 3723 (Application 5169), Amended License 4196 (Application 9247),

Amended License 10180 (Application 18006), Amended Permit 11605 (Application 15673), and Permits Issued Pursuant to Applications 31487 and 31488

By California Coordinate System of 1983 in Zone 2

40-acre subdivision of public land survey or projection thereof

Section Township Range Base and Meridian

(5) Farad Power Plant Ditch & Flume North 2,276,726 feet and East 7,119,940 feet

SW ¼ of NW ¼

30

18N

18E

MD

(6) Fleish Power Plant Ditch & Flume North 2,297,211 feet and East 7,124,864 feet

NE ¼ of SE ¼

6

18N

18E

MD

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(7) Steamboat Canal North 14,843,385 feet and East 2,223,994 feet

NE ¼ of SW ¼

31

19N

18E

MD

(8) Coldron Ditch North 14,850,973 feet and East 2,226,583 feet

SE ¼ of NE ¼

30

19N

18E

MD

(9) Katz Ditch North 14,853,083 feet and East 2,226,202 feet

SE ¼ of SE ¼

19

19N

18E

MD

(10) Verdi Power Plant, Ditch & Flume North 14,853,117 feet and East 2,226,229 feet

SE ¼ of SE ¼

19

19N

18E

MD

(11) Washoe Power Plant Ditch North 14,862,54814,862,766 feet and East 2,235,8592,235,824 feet

NW ¼ of NE ¼

16

19N

18E

MD

(12) Hogan Ditch North 14,860,793 feet and East 2,236,229 feet

SW ¼ of NE ¼

16

19N

18E

MD

(13) Highland Ditch North 14,863,05914,862,766 feet and East 2,236,2562,235,824 feet

SWNW ¼ of SENE

¼

916

19N

18E

MD

(14) Mastin Ditch North 14,858,104 feet and East 2,244,534 feet

SE ¼ of SW ¼

14

19N

18E

MD

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(15) Last Chance Ditch North 14,860,796 feet and East 2,247,614 feet

SE ¼ of NE ¼

14

19N

18E

MD

Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(16) Sparks-Capurro Ditch North 14,859,813 feet and East 2,250,976 feet

NW ¼ of SE ¼

13

19N

18E

MD

(17) Irwin-Mayberry Ditch North 14,856,488 feet and East 2,254,953 feet

NE ¼ of NW ¼

19

19N

19E

MD

(18) Lake Ditch (Lake Southside) North 14,856,917 feet and East 2,255,686 feet

NE ¼ of NW ¼

19

19N

19E

MD

(19) South Side Canal North 14,858,528 feet and East 2,259,680 feet

NE ¼ of SW ¼

17

19N

19E

MD

(20) Orr Ditch, Orr Extension & Spanish Spring Valley Ditch North 14,859,198 feet and East 2,260,521 feet

NE ¼ of SW ¼

17

19N

19E

MD

(21) Indian Flat Ditch North 14,858,946 feet and East 2,262,112 feet

NE ¼ of SE ¼

17

19N

19E

MD

(22) Orr Ditch Pump Station North 14,859,008 feet and East 2,262,704 feet

NE ¼ of SE ¼

17

19N

19E

MD

(23) Reno Power Ditch & Flume North 14,859,867 feet and East 2,267,642 feet

SE ¼ of NE ¼

16

19N

19E

MD

(24) Countryman Ditch North 14,862,075 feet and East 2,268,033 feet

NE ¼ of NE ¼

16

19N

19E

MD

(25) Chism Ditch North 14,862,003 feet and East 2,268,150 feet

NE ¼ of NE ¼

16

19N

19E

MD

(26) English Mill Ditch & English Mill Tailrace Ditch North 14,863,566 feet and East 2,271,673 feet

NW ¼ of SE ¼

10

19N

19E

MD

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Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(27) Hayden Ditch or Court Ditch North 14,862,824 feet and East 2,272,659 feet

SE ¼ of SE ¼

10

19N

19E

MD

(28) Idlewild Pump Station North 14,862,625 feet and East 2,273,168 feet

SE ¼ of SE ¼

10

19N

19E

MD

(29) Sullivan & Kelly Ditch North 14,863,999 feet and East 2,276,707 feet

NW ¼ of SE ¼

11

19N

19E

MD

(30) Cochran Ditch North 14,863,699 feet and East 2,277,344 feet

NW ¼ of SE ¼

11

19N

19E

MD

(31) Riverside Mill Ditch & Flume (Claim #10) North 14,864,144 feet and East 2,277,365 feet

NW ¼ of SE ¼

11

19N

19E

MD

(32) Scott Ranch Ditch North 14,865,010 feet and East 2,279,290 feet

SW ¼ of NW ¼

12

19N

19E

MD

(33) Abbee Ditch North 14,866,265 feet and East 2,283,562 feet

SE ¼ of NE ¼

12

19N

19E

MD

(34) Perry Ditch North 14,866,298 feet and East 2,284,219 feet

SE ¼ of NE ¼

12

19N

19E

MD

(35) Eastman Ditch North 14,865,286 feet and East 2,287,441 feet

SW ¼ of NE ¼

7

19N

20E

MD

(36) No. Truckee Ditch (Glendale Plant) North 14,865,173 feet and East 2,287,712 feet

SW ¼ of NE ¼

7

19N

20E

MD

(37) Sessions Ditch North 14,865,057 feet and East 2,287,842 feet

SW ¼ of NE ¼

7

19N

20E

MD

(38) Pioneer Ditch North 14,862,744 feet and East 2,289,385 feet

SE ¼ of SE ¼

7

19N

20E

MD

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Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(39) Stephens Ditch (Stevens) North 14,862,524 feet and East 2,291,611 feet

SE ¼ of SW ¼

8

19N

20E

MD

(40) Glendale Ditch North 14,862,252 feet and East 2,291,882 feet

SE ¼ of SW ¼

8

19N

20E

MD

(41) Hidden Valley Induction Well #4 North 14,861,057 feet and East 2,295,828 feet

SW ¼ of NW ¼

16

19N

20E

MD

(42) Largomarsino -Murphy Ditch (S. Largomarsino) North 14,858,576 feet and East 2,316,686 feet

NW ¼ of SE ¼

18

19N

21E

MD

(43) Largomarsino – Noce Ditch (N. Largomarsino) North 14,858,813 feet and East 2,318,003 feet

NE ¼ of SE ¼

18

19N

21E

MD

(44) Groton Ditch North 14,858,234 feet and East 2,324,482 feet

NE ¼ of SE ¼

17

19N

21E

MD

(45) Sheep Ranch Ditch North 14,859,130 feet and East 2,325,476 feet

NW ¼ of SW ¼

16

19N

21E

MD

(46) McCarran North Side Ditch North 14,866,397 feet and East 2,338,153 feet

NE ¼ of NW ¼

11

19N

21E

MD

(47) McCarran South Side Ditch North 14,870,31714,870,713 feet and East 2,342,4602,342,338 feet

SW ¼ of NW ¼

1

19N

21E

MD

(48) Old Ditch North 14,871,849 feet and East 2,349,880 feet

NW ¼ of NE ¼

6

19N

22E

MD

(49) Hill Ditch North 14,876,905 feet and East 2,354,774 feet

NW ¼ of NE ¼

32

20N

22E

MD

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Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section (Projected)*

Township Range Base and Meridian

(50) Tracy Power Plant North 14,877,698 feet and East 2,359,590 feet

SE ¼ of SW ¼

28

20N

2322E

MD

(51) Derby Dam & Truckee Canal North 14,884,92814,885,141 feet and East 2,380,5162,380,928 feet

NE ¼ of SW ¼

19

20N

23E

MD

(52) Preston Ditch North 14,885,468 feet and East 2,386,178 feet

SE ¼ of NW ¼

20

20N

23E

MD

(53) Washburn Ditch North 14,885,521 feet and East 2,396,933 feet

SE ¼ of NW ¼

22

20N

23E

MD

(54) Gregory Ditch North 14,888,853 feet and East 2,405,578 feet

SE ¼ of SE ¼

14

20N

23E

MD

(55) Wadsworth Power Ditch North 14,889,268 feet and East 2,406,873 feet

NW ¼ of SW ¼

13

20N

23E

MD

(56) Herman Ditch North 14,891,95714,892,654 feet and East 2,417,7752,417,832 feet

NW ¼ of NW ¼

17

20N

24E

MD

(57) Pierson Ditch North 14,894,902 feet and East 2,422,828 feet

NW ¼ of SW ¼

9

20N

24E

MD

(58) Olinghouse No. 1 Ditch North 14,897,868 feet and East 2,425,862 feet

NW ¼ of NE ¼

9

20N

24E

MD

(59) Fernley North 14,899,217 feet and East 2,427,535 feet

SW ¼ of NWSW ¼

93

20N

24E

MD

(60) Proctor Ditch North 14,901,29014,900,772 feet and East 2,428,1992,427,717 feet

SW ¼ of NW ¼

3

20N

24E

MD

(61) Fellnagle Ditch North 14,905,654 feet and East 2,425,317 feet

NW ¼ of SE ¼

33

21N

24E

MD

(62) Olinghouse No. 2

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Ditch North 14,914,468 feet and East 2,431,328 feet

SW ¼ of SE ¼ 22 21N 24E MD

Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section (Projected)*

Township Range Base and Meridian

(63) Gardella Ditch North 14,922,553 feet and East 2,428,236 feet

SW ¼ of NW ¼

15

21N

24E

MD

(64) Olinghouse No. 3 Ditch North 14,923,152 feet and East 2,428,587 feet

SW ¼ of NW ¼

15

21N

24E

MD

(65) Indian Ditch (Nixon Ditch) North 14,959,01314,959,047 feet and East 2,408,1122,409,488 feet

SW ¼ of SWNE ¼

1812

22N

23E

MD

The following points of rediversion apply only to Amended Permit 11605 and Amended License 10180

(8a) Truckee Meadows: Numerous points of rediversion between points (8) and (40)

SE ¼ of NE ¼

30

19N

18E

MD

SE ¼ of SW ¼

8

19N

20E

MD

(66) Newlands Project: Lahontan Dam North 14,839,256 feet and East 2,488,123 feet

Bearing N. 82º45’E. 3850 feet from SW corner

33

19N

26E

MD

(67) Newlands Project: Numerous points of rediversion between Carson Diversion Dam North 14,849,892 feet and East 2,509,034 feet and Sagouspe Diversion Dam: North 14,867,558 feet and East 2,581,744 feet

Bearing N. 56º30’W. 1,885 feet from SWSE corner

19

19N

27E

MD

Bearing N. 43º00’E. 3,620 feet from SW

corner

4

19N

29E

MD

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D R A F T September 25, 2012

106

Table B – Location of Points of Diversion (POD), Places of Storage, and Points of Rediversion (POR) – Permit issued Pursuant to Application 31487, Amended

Permit 11605 (Application 15673), Amended License 3723 (Application 5169), and

Amended License 4196 (Application 9247) By California Coordinate System of 1983, Zone 2

Source 40-acre subdivision of

public land survey or projection

thereof

Section Township Range Base and Meridian

POD (1): Independence Dam (Independence Lake) North 2,295,098 feet and East 7,044,314 feet

Independence

Creek

NW ¼ of SW ¼

35

19N

15E

MD

POD & POR (2): Stampede Dam (Stampede Reservoir) North 2,304,477 feet and East 7,096,882 feet

Little Truckee

River

NW ¼ of NW ¼

28

19N

17E

MD

POD & POR (3): Boca Dam (Boca Reservoir) North 2,273,334 feet and East 7,099,243 feet

Little Truckee

River

SE ¼ of SW ¼

21

18N

17E

MD

See additional points of rediversion in Table A of this Decision.

Table C – Authorized Incidental Power Use at the following locations: Powerhouse Subdivision Section Township Range Base and

Meridian Stampede** SW ¼ of NW ¼ 28 19N 17E MD

Farad SE ¼ of SE ¼ 12 18N 17E MD

Fleish NE ¼ of SE ¼ 30 19N 18E MD

Verdi NW ¼ of SE ¼ 8 19N 18E MD

Washoe SW ¼ of SW ¼ 14 19N 18E MD

** Not included in Permit issued pursuant to Application 31488 or License 10180, which do not

include Incidental Power at the Stampede powerhouse.

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D R A F T September 25, 2012

107

Table D – Mandatory License Terms The right hereby confirmed to the diversion and use of water is restricted to the point or points of

diversion herein specified and to the lands or place of use herein described.

Reports shall be filed promptly by the licensee on the appropriate forms which will be provided

for the purpose from time to time by the State Water Board.

Licensee shall allow representatives of the State Water Board and other parties, as may be

authorized from time to time by the State Water Board, reasonable access to project works to

determine compliance with the terms of this license.

Pursuant to Water Code sections 100 and 275 and the common law public trust doctrine, all

rights and privileges under this license, including method of diversion, method of use, and

quantity of water diverted, are subject to the continuing authority of the State Water Board in

accordance with law and in the interest of the public welfare to protect public trust uses and to

prevent waste, unreasonable use, unreasonable method of use, or unreasonable method of

diversion of said water.

The continuing authority of the State Water Board may be exercised by imposing specific

requirements over and above those contained in this license with a view to eliminating waste of

water and to meeting the reasonable water requirements of licensee without unreasonable draft

on the source. Licensee may be required to implement a water conservation plan, features of

which may include but not necessarily be limited to: (1) reusing or reclaiming the water

allocated; (2) using water reclaimed by another entity instead of all or part of the water

allocated; (3) restricting diversions so as to eliminate agricultural tailwater or to reduce return

flow; (4) suppressing evaporation losses from water surfaces; (5) controlling phreatophytic

growth; and (6) installing, maintaining, and operating efficient water measuring devices to

assure compliance with the quantity limitations of this license and to determine accurately water

use as against reasonable water requirement for the authorized project. No action will be taken

pursuant to this paragraph unless the State Water Board determines, after notice to affected

parties and opportunity for hearing, that such specific requirements are physically and financially

feasible and are appropriate to the particular situation.

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D R A F T September 25, 2012

108

The continuing authority of the State Water Board also may be exercised by imposing further

limitations on the diversion and use of water by the licensee in order to protect public trust uses.

No action will be taken pursuant to this paragraph unless the State Water Board determines,

after notice to affected parties and opportunity for hearing, that such action is consistent with

California Constitution article X, section 2; is consistent with the public interest and is necessary

to preserve or restore the uses protected by the public trust.

The quantity of water diverted under this license is subject to modification by the State Water

Board if, after notice to the licensee and an opportunity for hearing, the State Water Board finds

that such modification is necessary to meet water quality objectives in water quality control plans

which have been or hereafter may be established or modified pursuant to division 7 of the Water

Code. No action will be taken pursuant to this paragraph unless the State Water Board finds that:

(1) adequate waste discharge requirements have been prescribed and are in effect with respect to

all waste discharges which have any substantial effect upon water quality in the area involved,

and (2) the water quality objectives cannot be achieved solely through the control of waste

discharges.

This license does not authorize any act which results in the taking of a threatened or

endangered species or candidate species or any act which is now prohibited, or becomes

prohibited in the future, under either the California Endangered Species Act (Fish and Game

Code §§ 2050 to 2089) or the federal Endangered Species Act (16 U.S.C.A. §§ 1531 to 1544).

If a “take” will result from any act authorized under this water right, the licensee shall obtain

authorization for an incidental take prior to construction or operation of the project. Licensee

shall be responsible for meeting all requirements of the state or federal Endangered Species

Acts for the project authorized under this license.

If construction or rehabilitation work is required for the diversion works covered by this license

within the bed, channel, or bank of the affected water body, the licensee shall enter into a

streambed or lake alteration agreement with the State Department of Fish and Game. Licensee

shall submit a copy of the agreement, or waiver thereof, to the Division of Water Rights prior to

commencement of work. Compliance with the terms and conditions of the agreement is the

responsibility of the licensee.

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D R A F T September 25, 2012

109

This license is granted and the licensee accepts all rights herein confirmed subject to the following

provisions of the Water Code:

Section 1625. Each license shall be in such form and contain such terms as may be prescribed by the State Water Board. Section 1626. All licenses shall be under the terms and conditions of this division (of the Water Code). Section 1627. A license shall be effective for such time as the water actually appropriated under it is used for a useful and beneficial purpose in conformity with this division (of the Water Code) but no longer. Section 1628. Every license shall include the enumeration of conditions therein which in substance shall include all of the provisions of this article (of the Water Code) and the statement that any appropriator of water to whom a license is issued takes the license subject to the conditions therein expressed. Section 1629. Every licensee, if he accepts a license, does so under the conditions precedent that no value whatsoever in excess of the actual amount paid to the State therefore shall at any time be assigned to or claimed for any license granted or issued under the provisions of this division (of the Water Code), or for any rights granted or acquired under the provisions of this division (of the Water Code), in respect to the regulation by any competent public authority of the services or the price of the services to be rendered by any licensee or by the holder of any rights granted or acquired under the provisions of this division (of the Water Code) or in respect to any valuation for purposes of sale to or purchase, whether through condemnation proceedings or otherwise, by the State or any city, city and county, municipal water district, irrigation district, lighting district, or any political subdivision of the State, of the rights and property of any licensee, or the possessor of any rights granted, issued, or acquired under the provisions of this division (of the Water Code). Section 1630. At any time after the expiration of twenty years after the granting of a license, the State or any city, city and county, municipal water district, irrigation district, lighting district, or any political subdivision of the State shall have the right to purchase the works and property occupied and used under the license and the works built or constructed for the enjoyment of the rights granted under the license. Section 1631. In the event that the State, or any city, city and county, municipal water district, irrigation district, lighting district, or political subdivision of the State so desiring to purchase and the owner of the works and property cannot agree upon the purchase price, the price shall be determined in such manner as is now or may hereafter be provided by law for determining the value of property taken in eminent domain proceedings.

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Enclosed Service List - 2 - September 25, 2012

been deleted in its entirety and the sections have been renumbered accordingly. Other

revisions have been made to the draft decision and permit and license terms consistent

with the Board’s approval.

2. Place of Use Irrigated Acreage Amount. The revised draft decision approves a net

irrigated acreage amount of 26,800 acres in the Truckee Meadows area for Permit

11605, License 4196, License 10180, and permits issued pursuant to Application 31487

and Application 31488. The maximum net irrigated acreage amount authorized under

License 3723 for the Truckee Meadows area— 29,000 acres—is not reduced. The

permits and licenses have been revised accordingly.

3. Urban Water Management Plan Requirement. This requirement has been removed from

the revised draft decision and the permits and licenses.

4. Farad Diversion Dam Flow Requirement. The revised draft decision continues to require

compliance with the Farad bypass flow requirement, but the permit and license terms

have been clarified as to its applicability.

5. Stampede Reservoir Minimum Release Condition. The revised draft decision continues

to require compliance with the Stampede Reservoir instream flow condition, but the term

has been revised so that it does not apply to water collected to storage in other

reservoirs and subsequently transferred to Stampede Reservoir. Reclamation will be

required to maintain of an account of water stored in, and transferred to, Stampede

Reservoir.

6. Interstate Compact Terms. Permit and license terms that were intended to address the

appropriation and use of water in the Truckee River basin pending the implementation of

a Congressionally-approved interstate compact have been either removed or modified to

refer to Truckee-Carson-Pyramid Lake Water Rights Settlement Act.

7. Outlet Pipe Maintenance Requirement Term. This term has been revised to require

each permittee or licensee to maintain the existing outlet pipe for its reservoir, but the

term does not require a permittee or licensee to maintain the existing outlet pipe at a

reservoir that the permittee or licensee does not own. No water shall be diverted or

rediverted at another reservoir, however, if that reservoir’s outlet pipe is not in working

order.

8. Non-substantive Changes. Revisions have been made for purposes of clarification and

to correct typographical errors. The revised draft decision now also contains a Table of

Contents.

A copy of the revised draft decision will also be posted on the website dedicated to the hearing: http://www.waterboards.ca.gov/waterrights/water_issues/programs/hearings/truckee_river/index.shtml.

Written comments are to be addressed and submitted to:

Jeanine Townsend Clerk to the Board

State Water Resources Control Board P.O. Box 100

Sacramento, CA 95812-0100

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Enclosed Service List - 3 - September 25, 2012 You may also submit your comments to Ms. Townsend by fax at (916) 341-5620, by email at [email protected], or by hand delivery to the following location:

Jeanine Townsend, Clerk to the Board Executive Office

State Water Resources Control Board Cal/EPA Headquarters

1001 “I” Street, 24th Floor Sacramento, CA 95814

Couriers delivering comments must check in with lobby security and have them contact the Executive Office on the 24th floor at (916) 341-5600. Please include the subject line, “COMMENT LETTER – 10/16/12 BOARD MEETING: Truckee River Decision.” Any faxed or emailed items must be followed by a mailed or delivered hard copy with an original signature. If you have any non-controversial procedural questions, please contact Jean McCue, Water Resource Control Engineer, at (916) 341 5351 or by email at [email protected]. Sincerely, Michael Buckman, Chief Hearings Unit Enclosures: Truckee River Hearing Service List (Updated September 25, 2012) Revised Draft Decision Revised Draft Permits for Applications 31487 and 31488 Revised Draft Amended Permit 11605 (Application 15673) Revised Draft Amended Licenses 3723 (Application 5169), 4196 (Application

9247); and 10180 (Application 18006) cc: Janet Goldsmith Kronick Moskovitz Tiedemann & Girard [email protected]

Dan Fuchs Deputy Attorney General Office of the Attorney General [email protected]

Staff
Stamp
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Enclosed Service List - 4 - September 25, 2012

SERVICE LIST OF PARTIES TO EXCHANGE INFORMATION: TRUCKEE RIVER HEARING - JULY 21, 22, 23, 28 AND 29, 2010

SERVICE LIST

(Updated September 25, 2012)

PARTIES TO BE SERVED WITH WRITTEN TESTIMONY, EXHIBITS, AND OTHER DOCUMENTS. (Note: The parties listed below agreed to accept electronic service, pursuant to the rules specified in the hearing notice.) TRUCKEE CARSON IRRIGATION DISTRICT Michael J. Van Zandt Hanson Bridgett LLP 425 Market Street, 26th Floor San Francisco, CA 94015 (415) 777-3200 [email protected]

U.S. BUREAU OF RECLAMATION Stephen R. Palmer Office of the Solicitor, Dept. of Interior 2800 Cottage Way, Room E-1712 Sacramento, CA 95825 (916) 978-5683 [email protected]

CITY OF FERNLEY Paul G. Taggart Taggart & Taggart, Ltd. 108 North Minnesota Street Carson City, NV 89703 (775) 882-9900 [email protected]

CALIFORNIA DEPARTMENT OF WATER RESOURCES James Mizell 1416 Ninth Street, Room 1118 Sacramento, CA 95814 (916) 653-7533 [email protected]

PYRAMID LAKE PAIUTE TRIBE Don Springmeyer Christopher W. Mixson Wolf, Rifkin, Shapiro, Schulman & Rabkin LLP 3556 E. Russell Road, 2nd Floor Las Vegas, NV 89120 (702) 341-5200 [email protected] [email protected]

CHURCHILL COUNTY Craig Mingay Churchill County District Attorney’s Office 165 N. Ada Street Fallon, NV 89406 (775) 423‐6561 [email protected]

Continued on next page.

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Enclosed Service List - 5 - September 25, 2012 TRUCKEE MEADOWS WATER AUTHORITY Gordon H. DePaoli Woodburn and Wedge 6100 Neil Road, #500 Reno, NV 89511 (775) 688-3000 [email protected] [email protected] [email protected] [email protected]

WASHOE COUNTY WATER CONSERVATION DISTRICT Michael A.T. Pagni P.O. Box 2670 Reno, NV 89505 (775) 788-2020 [email protected]

CITY OF FALLON Michael F. Mackedon P.O. Box 1203 Fallon, NV 89407 (775) 423-2106 [email protected]

LIST OF INTERESTED PERSONS MAKING POLICY STATEMENTS ONLY (PARTIES ARE NOT REQUIRED TO SERVE THE FOLLOWING PERSONS WITH WRITTEN TESTIMONY, EXHIBITS, AND OTHER DOCUMENTS) CALIFORNIA DEPT. OF FISH & GAME Linda Barrera 1416 Ninth Street, 12th Floor Sacramento, CA 95814 (916) 651-7653 [email protected]

STATE OF NEVADA John W. Hoffman 429 West Plumb Lane Reno, NV 89509 (775) 322-4081 [email protected]

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September 25, 2012

STATE OF CALIFORNIA CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY STATE WATER RESOURCES CONTROL BOARD

DIVISION OF WATER RIGHTS

Amended License for Diversion and Use of Water APPLICATION 18006 PERMIT 11666 LICENSE 10180 Page 1 of 11

THIS IS TO CERTIFY, That United States Department of the Interior

Bureau of Reclamation 2800 Cottage Way (MP-440) Sacramento, CA 95825 has the right to the use of the waters of (4) Prosser Creek in Nevada County tributary to Truckee River thence Pyramid Lake for the purpose of Municipal, Domestic, Industrial, Irrigation, Stockwatering, Fish Culture, Water Quality, Recreational, Fish and Wildlife Preservation and Enhancement, and Incidental Power uses. This amended License is being issued in accordance with State Water Resources Control Board (State Water Board) Decision XXXX, adopted on XXXXXX. This amended License on Application 18006 filed on February 18, 1958 has been approved by the State Water Board SUBJECT TO PRIOR RIGHTS and to the limitations and conditions herein. Amended License 10180 supersedes the license originally issued for Prosser Creek Reservoir on August 24, 1973, which was perfected in accordance with the laws of California, the Regulations of the State Water Board, or its predecessor, and the terms of Permit 11666. The priority of this right dates from February 18, 1958. Proof of maximum beneficial use of water under this license was made as of August 5, 1970 (the date of inspection). The amount of water to which this right is entitled and hereby confirmed is limited to the amount actually beneficially used for the stated purposes and shall not exceed thirty thousand (30,000) acre-feet per annum, to be collected from April 10 to August 10 of each year. The maximum withdrawal in any one year shall not exceed 20,162 acre-feet. The maximum amount of water collected to storage in Prosser Creek Reservoir under this license and the permit issued pursuant to Application 31488 shall not exceed 30,000 acre-feet per year. The capacity of Prosser Creek Reservoir covered by this license and the permit issued pursuant to Application 31488 shall not exceed 29,800 acre-feet. This license does not authorize collection of water to storage outside of the specified season to offset evaporation and seepage losses or for any other purpose. The numbering for the points of diversion, points of rediversion, and places of storage for License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, are shown on the map [MAP NUMBER], dated [DATE], filed with the State Water Board.

1

1 Points of Diversion (1), (2) and (3) are points of diversion in the Little Truckee River watershed for Permit 11605, Licenses 3723

and 4196 and the permit issued pursuant to Application 31487. It is, therefore, intentionally not included in this license.

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APPLICATION 18006 PERMIT 11666 LICENSE 10180 Page 2 of 12 THE POINT OF DIVERSION AND PLACE OF STORAGE ON PROSSER CREEK OF SUCH WATER IS LOCATED: (4) Prosser Creek Reservoir - By California Coordinate System of 1983, Zone 2, North 2,269,206 feet

and East 7,088,234 feet, being within NW¼ of SW¼ of Section 30, T18N, R17E, MDB&M. THE POINTS OF REDIVERSION OF SUCH WATER ON THE TRUCKEE RIVER ARE LOCATED: (5) Farad Power Plant Ditch & Flume - By California Coordinate System of 1983, Zone 2,

North 2,276,726 feet and East 7,119,940 feet, being within SW¼ of NW¼ of Section 30, T18N, R18E, MDB&M.

(6) Fleish Power Plant Ditch & Flume - By California Coordinate System of 1983, Zone 2,

North 2,297,211 feet and East 7,124,864 feet, being within NE¼ of SE¼ of Section 6, T18N, R18E, MDB&M.

(7) Steamboat Canal - By Nevada Coordinate System of 1983, West Zone, North 14,843,385 feet and

East 2,223,994 feet, being within NE¼ of SW¼ of Section 31, T19N, R18E, MDB&M. (8) Coldron Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,850,973 feet and

East 2,226,583 feet, being within SE¼ of NE¼ of Section 30, T19N, R18E, MDB&M. (8a) Truckee Meadows: Numerous points of rediversion between points (8) and (40). (9) Katz Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,853,083 feet and

East 2,226,202 feet, being within SE¼ of SE¼ of Section 19, T19N, R18E, MDB&M. (10) Verdi Power Plant, Ditch & Flume - By Nevada Coordinate System of 1983, West Zone,

North 14,853,117 feet and East 2,226,229 feet, being within SE¼ of SE¼ of Section 19, T19N, R18E, MDB&M.

(11) Washoe Power Plant Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,862,548 766 feet and East 2,235,859 824 feet, being within NW¼ of NE¼ of Section 16, T19N, R18E, MDB&M.

(12) Hogan Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,860,793 feet and

East 2,236,229 feet, being within SW¼ of NE¼ of Section 16, T19N, R18E, MDB&M. (13) Highland Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,863862,059 766 feet

and East 2,236235,256 824 feet, being within SWNW¼ of SENE¼ of Section 916, T19N, R18E, MDB&M.

(14) Mastin Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,858,104 feet and

East 2,244,534 feet, being within SE¼ of SW¼ of Section 14, T19N, R18E, MDB&M. (15) Last Chance Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,860,796 feet and

East 2,247,614 feet, being within SE¼ of NE¼ of Section 14, T19N, R18E, MDB&M. (16) Sparks-Capurro Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,859,813 feet

and East 2,250,976 feet, being within NW¼ of SE¼ of Section 13, T19N, R18E, MDB&M. (17) Irwin-Mayberry Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,856,488 feet

and East 2,254,953 feet, being within NE¼ of NW¼ of Section 19, T19N, R19E, MDB&M. (18) Lake Ditch (Lake Southside) - By Nevada Coordinate System of 1983, West Zone,

North 14,856,917 feet and East 2,255,686 feet, being within NE¼ of NW¼ of Section 19, T19N, R19E, MDB&M.

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APPLICATION 18006 PERMIT 11666 LICENSE 10180 Page 3 of 12 (19) South Side Canal - By Nevada Coordinate System of 1983, West Zone, North 14,858,528 feet and

East 2,259,680 feet, being within NE¼ of SW¼ of Section 17, T19N, R19E, MDB&M. (20) Orr Ditch, Orr Extension & Spanish Spring Valley Ditch - By Nevada Coordinate System of 1983,

West Zone, North 14,859,198 feet and East 2,260,521 feet, being within NE¼ of SW¼ of Section 17, T19N, R19E, MDB&M.

(21) Indian Flat Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,858,946 feet and

East 2,262,112 feet, being within NE¼ of SE¼ of Section 17, T19N, R19E, MDB&M. (22) Orr Ditch Pump Station - By Nevada Coordinate System of 1983, West Zone, North 14,859,008 feet

and East 2,262,704 feet, being within NE¼ of SE¼ of Section 17, T19N, R19E, MDB&M. (23) Reno Power Ditch & Flume - By Nevada Coordinate System of 1983, West Zone,

North 14,859,867 feet and East 2,267,642 feet, being within SE¼ of NE¼ of Section 16, T19N, R19E, MDB&M.

(24) Countryman Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,862,075 feet and

East 2,268,033 feet, being within NE¼ of NE¼ of Section 16, T19N, R19E, MDB&M. (25) Chism Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,862,003 feet and

East 2,268,150 feet, being within NE¼ of NE¼ of Section 16, T19N, R19E, MDB&M. (26) English Mill Ditch & English Mill Tailrace Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,863,566 feet and East 2,271,673 feet, being within NW¼ of SE¼ of Section 10, T19N, R19E, MDB&M.

(27) Hayden Ditch or Court Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,862,824 feet and East 2,272,659 feet, being within SE¼ of SE¼ of Section 10, T19N, R19E, MDB&M.

(28) Idlewild Pump Station - By Nevada Coordinate System of 1983, West Zone, North 14,862,625 feet

and East 2,273,168 feet, being within SE¼ of SE¼ of Section 10, T19N, R19E, MDB&M. (29) Sullivan & Kelly Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,863,999 feet

and East 2,276,707 feet, being within NW¼ of SE¼ of Section 11, T19N, R19E, MDB&M. (30) Cochran Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,863,699 feet and

East 2,277,344 feet, being within NW¼ of SE¼ of Section 11, T19N, R19E, MDB&M. (31) Riverside Mill Ditch & Flume (Claim #10) - By Nevada Coordinate System of 1983, West Zone,

North 14,864,144 feet and East 2,277,365 feet, being within NW¼ of SE¼ of Section 11, T19N, R19E, MDB&M.

(32) Scott Ranch Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,865,010 feet and

East 2,279,290 feet, being within SW¼ of NW¼ of Section 12, T19N, R19E, MDB&M. (33) Abbee Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,866,265 feet and

East 2,283,562 feet, being within SE¼ of NE¼ of Section 12, T19N, R19E, MDB&M. (34) Perry Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,866,298 feet and

East 2,284,219 feet, being within SE¼ of NE¼ of Section 12, T19N, R19E, MDB&M. (35) Eastman Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,865,286 feet and

East 2,287,441 feet, being within SW¼ of NE¼ of Section 7, T19N, R20E, MDB&M. (36) No. Truckee Ditch (Glendale Plant) - By Nevada Coordinate System of 1983, West Zone,

North 14,865,173 feet and East 2,287,712 feet, being within SW¼ of NE¼ of Section 7, T19N, R20E, MDB&M.

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APPLICATION 18006 PERMIT 11666 LICENSE 10180 Page 4 of 12 (37) Sessions Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,865,057 feet and

East 2,287,842 feet, being within SW¼ of NE¼ of Section 7, T19N, R20E, MDB&M. (38) Pioneer Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,862,744 feet and

East 2,289,385 feet, being within SE¼ of SE¼ of Section 7, T19N, R20E, MDB&M. (39) Stephens Ditch (Stevens) - By Nevada Coordinate System of 1983, West Zone,

North 14,862,524 feet and East 2,291,611 feet, being within SE¼ of SW¼ of Section 8, T19N, R20E, MDB&M.

(40) Glendale Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,862,252 feet and

East 2,291,882 feet, being within SE¼ of SW¼ of Section 8, T19N, R20E, MDB&M. (41) Hidden Valley Induction Well #4 - By Nevada Coordinate System of 1983, West Zone,

North 14,861,057 feet and East 2,295,828 feet, being within SW¼ of NW¼ of Section 16, T19N, R20E, MDB&M.

(42) Largomarsino - Murphy Ditch (S. Largomarsino) - By Nevada Coordinate System of 1983,

West Zone, North 14,858,576 feet and East 2,316,686 feet, being within NW¼ of SE¼ of Section 18, T19N, R21E, MDB&M.

(43) Largomarsino - Noce Ditch (N. Largomarsino) - By Nevada Coordinate System of 1983, West Zone,

North 14,858,813 feet and East 2,318,003 feet, being within NE¼ of SE¼ of Section 18, T19N, R21E, MDB&M.

(44) Groton Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,858,234 feet and

East 2,324,482 feet, being within NE¼ of SE¼ of Section 17, T19N, R21E, MDB&M. (45) Sheep Ranch Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,859,130 feet

and East 2,325,476 feet, being within NW¼ of SW¼ of Section 16, T19N, R21E, MDB&M. (46) McCarran North Side Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,866,397 feet and East 2,338,153 feet, being within NE¼ of NW¼ of Section 11, T19N, R21E, MDB&M.

(47) McCarran South Side Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,870,317 713 feet and East 2,342,460 338 feet, being within SW¼ of NW¼ of Section 1, T19N, R21E, MDB&M.

(48) Old Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,871,849 feet and

East 2,349,880 feet, being within NW¼ of NE¼ of Section 6, T19N, R22E, MDB&M. (49) Hill Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,876,905 feet and

East 2,354,774 feet, being within NW¼ of NE¼ of Section 32, T20N, R22E, MDB&M. (50) Tracy Power Plant - By Nevada Coordinate System of 1983, West Zone, North 14,877,698 feet and

East 2,359,590 feet, being within SE¼ of SW¼ of Section 28, T20N, R23ER22E, MDB&M. (51) Derby Dam & Truckee Canal - By Nevada Coordinate System of 1983, West Zone,

North 14,884885,928 141 feet and East 2,380,516 928 feet, being within NE¼ of SW¼ of Section 19, T20N, R23E, MDB&M.

(52) Preston Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,885,468 feet and

East 2,386,178 feet, being within SE¼ of NW¼ of Section 20, T20N, R23E, MDB&M. (53) Washburn Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,885,521 feet and

East 2,396,933 feet, being within SE¼ of NW¼ of Section 22, T20N, R23E, MDB&M.

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APPLICATION 18006 PERMIT 11666 LICENSE 10180 Page 5 of 12 (54) Gregory Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,888,853 feet and

East 2,405,578 feet, being within SE¼ of SE¼ of Section 14, T20N, R23E, MDB&M. (55) Wadsworth Power Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,889,268 feet and East 2,406,873 feet, being within NW¼ of SW¼ of Section 13, T20N, R23E, MDB&M.

(56) Herman Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,891892,957 654 feet

and East 2,417,775 832 feet, being within NW¼ of NW¼ of Section 17, T20N, R24E, MDB&M. (57) Pierson Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,894,902 feet and

East 2,422,828 feet, being within NW¼ of SW¼ of Section 9, T20N, R24E, MDB&M. (58) Olinghouse No. 1 Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,897,868 feet and East 2,425,862 feet, being within NW¼ of NE¼ of Section 9, T20N, R24E, MDB&M.

(59) Fernley - By Nevada Coordinate System of 1983, West Zone, North 14,899,217 feet and

East 2,427,535 feet, being within SW¼ of NWSW¼ of Section 93, T20N, R24E, MDB&M. (60) Proctor Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,901900,290 772 feet

and East 2,428427,199 717 feet, being within SW¼ of NW¼ of Section 3, T20N, R24E, MDB&M. (61) Fellnagle Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,905,654 feet and

East 2,425,317 feet, being within NW¼ of SE¼ of Section 33, T21N, R24E, MDB&M. (62) Olinghouse No. 2 Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,914,468 feet and East 2,431,328 feet, being within SW¼ of SE¼ of Section 22, T21N, R24E, MDB&M.

(63) Gardella Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,922,553 feet and

East 2,428,236 feet, being within SW¼ of NW¼ of Section 15, T21N, R24E, MDB&M. (64) Olinghouse No. 3 Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,923,152 feet and East 2,428,587 feet, being within SW¼ of NW¼ of Section 15, T21N, R24E, MDB&M.

(65) Indian Ditch (Nixon Ditch) - By Nevada Coordinate System of 1983, West Zone,

North 14,959,013 047 feet and East 2,408409,112 488 feet, being within SW¼ of SWNE¼ of Section 1812, T22N, R23E, MDB&M.

THE POINTS OF REDIVERSION ONTO THE CARSON RIVER OF SUCH WATER ARE LOCATED: (66) Newlands Project, Lahontan Dam: By Nevada Coordinate System of 1983, West Zone,

North 14,839,256 feet and East 2,488,123 feet, Bearing N. 82º45’E. 3850 feet from SW corner of Section 33, T19N, R26E, MDB&M (Lahontan Dam).

(67) Newlands Project: Numerous points of rediversion between the Carson Diversion Dam (by Nevada

Coordinate System of 1983, West Zone, North 14,849,892 feet and East 2,509,034 feet, Bearing N. 56º30’W. 1,885 feet from SW SE corner of Section 19, T19N, R27E, MDB&M), and Sagouspe Diversion Dam (By Nevada Coordinate System of 1983, West Zone, North 14,867,558 feet and East 2,581,744 feet, Bearing N. 43º00”E. 3,620 feet from SW corner of Section 334, T19N, R26ER29E, MDB&M.)

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APPLICATION 18006 PERMIT 11666 LICENSE 10180 Page 6 of 12 A DESCRIPTION OF THE LANDS OR THE PLACE WHERE SUCH WATER IS PUT TO BENEFICIAL USE IS AS FOLLOWS: Municipal, Domestic, Industrial, Stockwatering, Fish Culture, Water Quality, Recreational, and Fish and Wildlife Preservation and Enhancement uses within lands described as follows: T13N, R17E-R18E; T14N, R16E-R18E; T15N, R16E-R18E; T16N, R16E-R18E; T17N, R15E-R20E; T17N, R24E-R31E; T18N, R14E-R21E; T18N, R24E-R31E; T19N, R14E-R31E; T20N, R18E-R32E; T21N, R18E-R26E; T21N, R29E-R32E; T22N-T27N, R20E-R24E; and T28N, R23E-R24E; all within MDB&M. The maximum area irrigated in any one year under License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 99,000 net acres within a total gross area of 143,480 acres as follows: The maximum area irrigated in any one year under License 3723 (Application 5169) shall not exceed the following:

Truckee Meadows: 29,000 acres in the vicinity of Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; all within MDB&M, and Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E; all within MDB&M.

The maximum area irrigated in any one year under License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 96,800 net acres within a total gross area of 143,480 acres as follows:

Truckee Meadows: 26,800 net acres within a gross area of 36,340 acres in the vicinity of Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; all within MDB&M, and Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E; all within MDB&M.

The Irrigated Places of Use are shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board. The maximum area irrigated in any one year under License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 96,800 net acres within a total gross area of 143,480 acres as follows: Truckee Meadows: 26,800 net acres within a gross area of 36,340 acres in the vicinity of

Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; and Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of

Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E;

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APPLICATION 18006 PERMIT 11666 LICENSE 10180 Page 7 of 12 all within MDB&M. Incidental Power use at the following locations: Farad Powerhouse - within the SE¼ of SE¼ of Section 12, T18N, R17E, MDB&M; Fleish Powerhouse - within the NE¼ of SE¼ of Section 30, T19N, R18E, MDB&M; Verdi Powerhouse - within the NW¼ of SE¼ of Section 8, T19N, R18E, MDB&M; and Washoe Powerhouse - within the SW¼ of SW¼ of Section 14, T19N, R18E, MDB&M. Places of Use as shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board. Water diverted for Incidental Power use under this license is for nonconsumptive use and is to be released to the Truckee River at the following locations: Farad Powerhouse Return: By California Coordinate System of 1983, Zone 2, North 2,284,919 feet and East 7,117,723 feet. Fleish Powerhouse Return: By Nevada Coordinate System of 1983, West Zone,

North 14,848,874 feet and East 2,226,837 feet. Verdi Powerhouse Return: By Nevada Coordinate System of 1983, West Zone,

North 14,864,373 feet and East 2,230,562 feet. Washoe Powerhouse Return: By Nevada Coordinate System of 1983, West Zone,

North 14,857,794 feet and East 2,243,430 feet. (0000111 mod.)

Licensee shall consult with the Division of Water Rights as to whether licensee is an “urban water supplier” as defined in California Water Code section 10617. If licensee is an urban water supplier, then within one year from issuance of this license, licensee shall submit to the State Water Board its Urban Water Management Plan as prepared and adopted in conformance with California Water Code section 10610, et seq., or a comparable urban water management plan, as may be authorized under Nevada law that contains similar information. The plan may be supplemented by any additional information that may be required by the State Water Board. All cost-effective measures identified in the Urban Water Management Plan or comparable plan and any supplements thereto shall be implemented in accordance with the schedule for implementation found therein. (0000029A mod.) If it is determined after license issuance that the as-built conditions of the project are not correctly represented by the map(s) prepared to accompany the application, the licensee shall, at his expense, have the subject map(s) updated or replaced with equivalent as-built map(s). The revision(s) or new map(s) shall be prepared by a civil engineer or land surveyor registered or licensed in the State of California and shall meet the requirements prescribed in section 715 and sections 717 through 723 of the California Code of Regulations, Title 23. The revision(s) or map(s) shall be furnished upon request of the Deputy Director for Water Rights. (0000030) In compliance with section 5937 of the Fish and Game Code, if storage or diversion of water authorized by this license is by means of a dam, the licensee shall allow sufficient water at all times to pass through a fishway or, in the absence of a fishway, allow sufficient water to pass over, around, or through the dam to keep in good condition any fish that may be planted or exist below the dam; provided, that during a period of low flow in the stream, upon approval of the State Department of Fish and Game, this requirement will be satisfied if sufficient water is passed through a culvert, waste gate, or over or around the dam to keep in good condition any fish that may be planted or exist below the dam if it is

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APPLICATION 18006 PERMIT 11666 LICENSE 10180 Page 8 of 12 impracticable or detrimental to pass the water through a fishway. In the case of a reservoir, this provision shall not require the passage or release of water at a greater rate than the unimpaired natural inflow into the reservoir. (0140069) (0210069) No water shall be rediverted at the Farad Diversion Dam, except in compliance with the bypass flow requirement imposed as a condition of water quality certification for the Farad Diversion Dam Replacement Project. Further, no water shall be rediverted at the Farad Diversion Dam unless (1) licensee has submitted information to the Deputy Director for Water Rights demonstrating that the licensee has acquired access to redivert water or made arrangements with Truckee Meadows Water Authority to divert water on licensee’s behalf, and (2) the Deputy Director for Water Rights advises the licensee that it has made a satisfactory demonstration.To ensure that the bypass flow requirement imposed as a condition of water quality certification for the Farad Diversion Dam Replacement Project is met, licensee shall bypass a minimum flow of 150 cubic feet per second in the bypass reach below the Farad diversion dam, or total Truckee River flow immediately upstream of the diversion dam, whichever is less, in the operation area, or applicable bypass flow as it may be revised in the water quality certification for the project. No diversion shall be allowed at the points of diversion or rediversion authorized by this license unless the applicable bypass flows are met.

(0140400) This license shall have an effective priority junior and subject to those rights reserved to California water users to appropriate unappropriated waters of the Little Truckee River as set forth in section 5976 of part 8, division 2 of the Water Code, the allocations of water of the Truckee River and its tributaries.

(9990800) Insofar as the appropriation of water under this license is concerned, Prosser Creek Reservoir shall not be operated by the licensee separately or in conjunction with other reservoirs of the Truckee River Basin so as to prevent in the future such consumptive beneficial uses of water as are presently being made in the California portion of said basin and such consumptive beneficial uses as are presently being made of water diverted from Little Truckee River to Sierra Valley, Echo Lake to the American River Basin, and Marlette Lake to Virginia City, Nevada; provided that the foregoing is a condition imposed upon the operation of said reservoir under this license and is not to be construed as a definition of the legality of any water right. Licensee shall keep adequate records of: A. The respective amounts of water impounded in and released from Prosser Creek Reservoir solely

for the purpose of exchanging water released from storage at Lake Tahoe for the maintenance of fish life.

B. The respective amount of waters impounded in and released from Prosser Creek Reservoir in

addition to the foregoing. C. Releases of stored waters from Lake Tahoe in fulfillment of the approved operation schedule in

condition A above. (0090800)

Licensee shall measure and monitor amounts diverted, collected to storage, withdrawn from storage and rediverted for beneficial use under this license. The licensee shall submit a plan for approval by the State Water Board that includes a description and location of the measuring devices, frequency of data collection, the methods for recording and reporting data to the State Water Board, and any calculations required to develop the records. The plan shall identify how the licensee will ensure that the total

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APPLICATION 18006 PERMIT 11666 LICENSE 10180 Page 9 of 12 cumulative amount of water collected, stored and used at Prosser Creek Reservoir will not exceed the authorized amount under the license. The plan shall also identify how the amounts collected and beneficially used under all of the permits and licenses for coordinated reservoir storage under the Truckee River Operating Agreement (TROA) will be accounted for under the individual permits and licenses and any other bases of right. The plan shall be submitted and approved by the Deputy Director for Water Rights prior to diversion under this license. Licensee shall implement the plan upon approval. A record of such measurements shall be maintained by the licensee, and made available to interested persons upon reasonable request. A copy of the records shall be submitted to the State Water Board with the annual “Report of Licensee.”

(0100900) Water stored in Prosser Creek Reservoir pursuant to pre-1914 permits issued by the Nevada State Engineer under Nevada Law, and recognized pursuant to the provisions of California Water Code sections 1231 and 1232 shall not be considered as water stored pursuant to the provisions of this license.

(9990999) Licensee shall maintain the existing outlet pipe in Prosser Creek Reservoir in proper working order. (0050800) If and when the interstate compact covering the distribution and use of waters of the Truckee and Carson Rivers is consented to by congress, the operation of Prosser Reservoir shall be in conformity with such compact and the terms and conditions set forth in this license which are in conflict therewith shall not apply.

(9990300) Diversions under this license shall be subject to the interstate allocation authorized under the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104 Stat. 3289) when the allocation becomes effective.

(0540900) Due to the licensee’s ability to exchange water among water right holders under TROA, beneficial uses for water shall only be credited to the permit or license under which the water was originally diverted.

(9990999) All diversions, storage, use of water and operations under this license shall be in accordance with the provisions contained in this license, the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104 Stat. 3289) (Settlement Act), and the TROA, which is on file with the State Water Board. The Board retains jurisdiction for the purpose of amending the terms of this permit to conform to the terms of TROA and the Settlement Act.

(0430300) Diversion of water under this license is subject to regulation by the TROA Administrator appointed to enforce the terms and conditions of the TROA to the extent such regulation is not inconsistent with the terms and conditions of this license.

(000N001 mod.) Licensee shall notify the Deputy Director for Water Rights, in writing, of any adjustments to operations or changes to TROA made in accordance with Article 13 of the TROA that will affect the diversion and use of water under this license.

(0490300)

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APPLICATION 18006 PERMIT 11666 LICENSE 10180 Page 10 of 12 The State Water Board reserves continuing authority in the public interest to modify the terms and conditions of this license, including imposition of requirements to alter project facilities or operations and to modify instream flow releases, in the event of unforeseen adverse impacts to fish or wildlife. State Water Board action will be taken only after notice to interested parties and opportunity for hearing.

(000M001)

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APPLICATION 18006 PERMIT 11666 LICENSE 10180 Page 11 of 12 The right hereby confirmed to the diversion and use of water is restricted to the point or points of diversion herein specified

and to the lands or place of use herein described.

Reports shall be filed promptly by the licensee on the appropriate forms which will be provided for the purpose from time to

time by the State Water Board.

Licensee shall allow representatives of the State Water Board and other parties, as may be authorized from time to time by the

State Water Board, reasonable access to project works to determine compliance with the terms of this license.

Pursuant to Water Code sections 100 and 275 and the common law public trust doctrine, all rights and privileges under this

license, including method of diversion, method of use, and quantity of water diverted, are subject to the continuing authority

of the State Water Board in accordance with law and in the interest of the public welfare to protect public trust uses and to

prevent waste, unreasonable use, unreasonable method of use, or unreasonable method of diversion of said water.

The continuing authority of the State Water Board may be exercised by imposing specific requirements over and above those

contained in this license with a view to eliminating waste of water and to meeting the reasonable water requirements of

licensee without unreasonable draft on the source. Licensee may be required to implement a water conservation plan,

features of which may include but not necessarily be limited to: (1) reusing or reclaiming the water allocated; (2) using water

reclaimed by another entity instead of all or part of the water allocated; (3) restricting diversions so as to eliminate

agricultural tailwater or to reduce return flow; (4) suppressing evaporation losses from water surfaces; (5) controlling

phreatophytic growth; and (6) installing, maintaining, and operating efficient water measuring devices to assure compliance

with the quantity limitations of this license and to determine accurately water use as against reasonable water requirement for

the authorized project. No action will be taken pursuant to this paragraph unless the State Water Board determines, after

notice to affected parties and opportunity for hearing, that such specific requirements are physically and financially feasible

and are appropriate to the particular situation.

The continuing authority of the State Water Board also may be exercised by imposing further limitations on the diversion and

use of water by the licensee in order to protect public trust uses. No action will be taken pursuant to this paragraph unless the

State Water Board determines, after notice to affected parties and opportunity for hearing, that such action is consistent with

California Constitution article X, section 2; is consistent with the public interest and is necessary to preserve or restore the

uses protected by the public trust.

The quantity of water diverted under this license is subject to modification by the State Water Board if, after notice to the licensee

and an opportunity for hearing, the State Water Board finds that such modification is necessary to meet water quality objectives

in water quality control plans which have been or hereafter may be established or modified pursuant to division 7 of the Water

Code. No action will be taken pursuant to this paragraph unless the State Water Board finds that: (1) adequate waste discharge

requirements have been prescribed and are in effect with respect to all waste discharges which have any substantial effect upon

water quality in the area involved, and (2) the water quality objectives cannot be achieved solely through the control of waste

discharges.

This license does not authorize any act which results in the taking of a threatened or endangered species or candidate species

or any act which is now prohibited, or becomes prohibited in the future, under either the California Endangered Species Act

(Fish and Game Code sections 2050 to 2089) or the federal Endangered Species Act (16 U.S.C.A. sections 1531 to 1544). If a

“take” will result from any act authorized under this water right, the licensee shall obtain authorization for an incidental take

prior to construction or operation of the project. Licensee shall be responsible for meeting all requirements of the state or

federal Endangered Species Acts for the project authorized under this license.

If construction or rehabilitation work is required for the diversion works covered by this license within the bed, channel, or

bank of the affected water body, the licensee shall enter into a streambed or lake alteration agreement with the State

Department of Fish and Game. Licensee shall submit a copy of the agreement, or waiver thereof, to the Division of Water

Rights prior to commencement of work. Compliance with the terms and conditions of the agreement is the responsibility of

the licensee.

This license is granted and the licensee accepts all rights herein confirmed subject to the following provisions of the Water Code:

Section 1625. Each license shall be in such form and contain such terms as may be prescribed by the State Water Board.

Section 1626. All licenses shall be under the terms and conditions of this division (of the Water Code).

Section 1627. A license shall be effective for such time as the water actually appropriated under it is used for a useful and

beneficial purpose in conformity with this division (of the Water Code) but no longer.

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APPLICATION 18006 PERMIT 11666 LICENSE 10180 Page 12 of 12 Section 1628. Every license shall include the enumeration of conditions therein which in substance shall include all of the

provisions of this article (of the Water Code) and the statement that any appropriator of water to whom a license is issued takes

the license subject to the conditions therein expressed.

Section 1629. Every licensee, if he accepts a license, does so under the conditions precedent that no value whatsoever in excess

of the actual amount paid to the State therefore shall at any time be assigned to or claimed for any license granted or issued under

the provisions of this division (of the Water Code), or for any rights granted or acquired under the provisions of this division (of

the Water Code), in respect to the regulation by any competent public authority of the services or the price of the services to be

rendered by any licensee or by the holder of any rights granted or acquired under the provisions of this division (of the Water

Code) or in respect to any valuation for purposes of sale to or purchase, whether through condemnation proceedings or otherwise,

by the State or any city, city and county, municipal water district, irrigation district, lighting district, or any political subdivision

of the State, of the rights and property of any licensee, or the possessor of any rights granted, issued, or acquired under the

provisions of this division (of the Water Code).

Section 1630. At any time after the expiration of twenty years after the granting of a license, the State or any city, city and

county, municipal water district, irrigation district, lighting district, or any political subdivision of the State shall have the right to

purchase the works and property occupied and used under the license and the works built or constructed for the enjoyment of the

rights granted under the license.

Section 1631. In the event that the State, or any city, city and county, municipal water district, irrigation district, lighting district,

or political subdivision of the State so desiring to purchase and the owner of the works and property cannot agree upon the

purchase price, the price shall be determined in such manner as is now or may hereafter be provided by law for determining the

value of property taken in eminent domain proceedings.

STATE WATER RESOURCES CONTROL BOARD

Barbara Evoy, Deputy Director

Division of Water Rights Dated:

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September 25, 2012

STATE OF CALIFORNIA CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY STATE WATER RESOURCES CONTROL BOARD

DIVISION OF WATER RIGHTS

Amended License for Diversion and Use of Water APPLICATION 9247 PERMIT 5392 LICENSE 4196 Page 1 of 11

THIS IS TO CERTIFY, That Truckee Meadows Water Authority

P.O. Box 30013 Reno, NV 89520 has the right to the use of the waters of (1) Independence Creek and (2)(3) Little Truckee River in Nevada and Sierra Counties tributary to (1) Little Truckee River and (2)(3) Truckee River thence Pyramid Lake for the purpose of Municipal, Domestic, Industrial, Irrigation, Stockwatering, Fish Culture, Water Quality, Recreational, Wildlife Enhancement, and Incidental Power uses. This amended license is being issued in accordance with State Water Resources Control Board (State Water Board) Decision XXXX, adopted on XXXXXX. This amended license on Application 9247 filed on February 24, 1938 has been approved by the State Water Board SUBJECT TO PRIOR RIGHTS and to the limitations and conditions herein. Amended License 4196 supersedes the license originally issued for Independence Lake on March 21, 1956, which was perfected in accordance with the laws of California, the Regulations of the State Water Board, or its predecessor, and the terms of Permit 5392. The priority of this right dates from February 24, 1938. Proof of maximum beneficial use of water under this license was made as of October 15, 1954 (the date of inspection). The amount of water to which this right is entitled and hereby confirmed is limited to the amount actually beneficially used for the stated purposes and shall not exceed seventeen thousand, five hundred (17,500) acre-feet per annum to be collected in Independence Lake, Stampede Reservoir, and Boca Reservoir from about December 1 of each year to about July 1 of the succeeding year. The maximum withdrawal in any one year shall not exceed 17,500 acre-feet. The maximum amount of water collected to storage in Independence Lake, Stampede Reservoir, and Boca Reservoir under License 3723 (Application 5169), License 4196 (Application 9247), License 2607 (Application 9267), Permit 11605 (Application 15673), Permit 18320 (Application 26273), and permit issued pursuant to Application 31487 shall not exceed a total of 284,850 acre-feet per year. The capacities of Independence Lake, Stampede Reservoir, and Boca Reservoir covered by License 3723 (Application 5169), License 4196 (Application 9247), License 2607 (Application 9267), Permit 11605 (Application 15673), Permit 18320 (Application 26273), and permit issued pursuant to Application 31487 shall not exceed 17,500 acre-feet in Independence Lake, 226,500 acre-feet in Stampede Reservoir, and 41,100 acre-feet in Boca Reservoir. This license does not authorize collection of water to storage outside of the specified season to offset evaporation and seepage losses or for any other purpose.

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APPLICATION 9247 PERMIT 5392 LICENSE 4196 Page 2 of 12 The numbering for the points of diversion, points of rediversion, and places of storage for License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, are shown on the map [MAP NUMBER], dated [DATE], filed with the State Water Board.

1

THE POINT OF DIVERSION AND PLACE OF STORAGE ON INDEPENDENCE CREEK OF SUCH WATER IS LOCATED: (1) Independence Lake - By California Coordinate System of 1983, Zone 2, North 2,304295,477 098

feet and East 7,096044,882 314 feet, being within NW¼ of SW¼ of Section 35, T19N, R15E, MDB&M.

THE POINTS OF DIVERSION, POINTS OF REDIVERSION, AND PLACES OF STORAGE ON LITTLE TRUCKEE RIVER OF SUCH WATER ARE LOCATED: (2) Stampede Reservoir - By California Coordinate System of 1983, Zone 2, North 2,304,477 feet and

East 7,096,882 feet, being within NW¼ of NW¼ of Section 28, T19N, R17E, MDB&M. (3) Boca Reservoir - By California Coordinate System of 1983, Zone 2, North 2,273,334 feet and East 7,099,243 feet, being within SE¼ of SW¼ of Section 21, T18N, R17E, MDB&M. THE POINTS OF REDIVERSION ON THE TRUCKEE RIVER OF SUCH WATER ARE LOCATED: (5) Farad Power Plant Ditch & Flume - By California Coordinate System of 1983, Zone 2,

North 2,276,726 feet and East 7,119,940 feet, being within SW¼ of NW¼ of Section 30, T18N, R18E, MDB&M.

(6) Fleish Power Plant Ditch & Flume - By California Coordinate System of 1983, Zone 2,

North 2,297,211 feet and East 7,124,864 feet, being within NE¼ of SE¼ of Section 6, T18N, R18E, MDB&M.

(7) Steamboat Canal - By Nevada Coordinate System of 1983, West Zone, North 14,843,385 feet and

East 2,223,994 feet, being within NE¼ of SW¼ of Section 31, T19N, R18E, MDB&M. (8) Coldron Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,850,973 feet and

East 2,226,583 feet, being within SE¼ of NE¼ of Section 30, T19N, R18E, MDB&M. (9) Katz Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,853,083 feet and

East 2,226,202 feet, being within SE¼ of SE¼ of Section 19, T19N, R18E, MDB&M. (10) Verdi Power Plant, Ditch & Flume - By Nevada Coordinate System of 1983, West Zone,

North 14,853,117 feet and East 2,226,229 feet, being within SE¼ of SE¼ of Section 19, T19N, R18E, MDB&M.

(11) Washoe Power Plant Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,862,548 766 feet and East 2,235,859 824 feet, being within NW¼ of NE¼ of Section 16, T19N, R18E, MDB&M.

(12) Hogan Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,860,793 feet and

East 2,236,229 feet, being within SW¼ of NE¼ of Section 16, T19N, R18E, MDB&M.

1 Point of Diversion (4) is a point of diversion at Prosser Creek Dam, on Prosser Creek, for Amended License 10180 and the permit

issued pursuant to Application 31488. It is, therefore, intentionally not included in this amended license.

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APPLICATION 9247 PERMIT 5392 LICENSE 4196 Page 3 of 12 (13) Highland Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,863862,059 766 feet

and East 2,236235,256 824 feet, being within SWNW¼ of SENE¼ of Section 916, T19N, R18E, MDB&M.

(14) Mastin Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,858,104 feet and

East 2,244,534 feet, being within SE¼ of SW¼ of Section 14, T19N, R18E, MDB&M. (15) Last Chance Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,860,796 feet and

East 2,247,614 feet, being within SE¼ of NE¼ of Section 14, T19N, R18E, MDB&M. (16) Sparks-Capurro Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,859,813 feet

and East 2,250,976 feet, being within NW¼ of SE¼ of Section 13, T19N, R18E, MDB&M. (17) Irwin-Mayberry Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,856,488 feet

and East 2,254,953 feet, being within NE¼ of NW¼ of Section 19, T19N, R19E, MDB&M. (18) Lake Ditch (Lake Southside) - By Nevada Coordinate System of 1983, West Zone,

North 14,856,917 feet and East 2,255,686 feet, being within NE¼ of NW¼ of Section 19, T19N, R19E, MDB&M.

(19) South Side Canal - By Nevada Coordinate System of 1983, West Zone, North 14,858,528 feet and

East 2,259,680 feet, being within NE¼ of SW¼ of Section 17, T19N, R19E, MDB&M. (20) Orr Ditch, Orr Extension & Spanish Spring Valley Ditch - By Nevada Coordinate System of 1983,

West Zone, North 14,859,198 feet and East 2,260,521 feet, being within NE¼ of SW¼ of Section 17, T19N, R19E, MDB&M.

(21) Indian Flat Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,858,946 feet and

East 2,262,112 feet, being within NE¼ of SE¼ of Section 17, T19N, R19E, MDB&M. (22) Orr Ditch Pump Station - By Nevada Coordinate System of 1983, West Zone, North 14,859,008 feet

and East 2,262,704 feet, being within NE¼ of SE¼ of Section 17, T19N, R19E, MDB&M. (23) Reno Power Ditch & Flume - By Nevada Coordinate System of 1983, West Zone,

North 14,859,867 feet and East 2,267,642 feet, being within SE¼ of NE¼ of Section 16, T19N, R19E, MDB&M.

(24) Countryman Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,862,075 feet and

East 2,268,033 feet, being within NE¼ of NE¼ of Section 16, T19N, R19E, MDB&M. (25) Chism Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,862,003 feet and

East 2,268,150 feet, being within NE¼ of NE¼ of Section 16, T19N, R19E, MDB&M. (26) English Mill Ditch & English Mill Tailrace Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,863,566 feet and East 2,271,673 feet, being within NW¼ of SE¼ of Section 10, T19N, R19E, MDB&M.

(27) Hayden Ditch or Court Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,862,824 feet and East 2,272,659 feet, being within SE¼ of SE¼ of Section 10, T19N, R19E, MDB&M.

(28) Idlewild Pump Station - By Nevada Coordinate System of 1983, West Zone, North 14,862,625 feet

and East 2,273,168 feet, being within SE¼ of SE¼ of Section 10, T19N, R19E, MDB&M. (29) Sullivan & Kelly Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,863,999 feet

and East 2,276,707 feet, being within NW¼ of SE¼ of Section 11, T19N, R19E, MDB&M.

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APPLICATION 9247 PERMIT 5392 LICENSE 4196 Page 4 of 12 (30) Cochran Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,863,699 feet and

East 2,277,344 feet, being within NW¼ of SE¼ of Section 11, T19N, R19E, MDB&M. (31) Riverside Mill Ditch & Flume (Claim #10) - By Nevada Coordinate System of 1983, West Zone,

North 14,864,144 feet and East 2,277,365 feet, being within NW¼ of SE¼ of Section 11, T19N, R19E, MDB&M.

(32) Scott Ranch Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,865,010 feet and

East 2,279,290 feet, being within SW¼ of NW¼ of Section 12, T19N, R19E, MDB&M. (33) Abbee Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,866,265 feet and

East 2,283,562 feet, being within SE¼ of NE¼ of Section 12, T19N, R19E, MDB&M. (34) Perry Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,866,298 feet and

East 2,284,219 feet, being within SE¼ of NE¼ of Section 12, T19N, R19E, MDB&M. (35) Eastman Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,865,286 feet and

East 2,287,441 feet, being within SW¼ of NE¼ of Section 7, T19N, R20E, MDB&M. (36) No. Truckee Ditch (Glendale Plant) - By Nevada Coordinate System of 1983, West Zone,

North 14,865,173 feet and East 2,287,712 feet, being within SW¼ of NE¼ of Section 7, T19N, R20E, MDB&M.

(37) Sessions Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,865,057 feet and

East 2,287,842 feet, being within SW¼ of NE¼ of Section 7, T19N, R20E, MDB&M. (38) Pioneer Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,862,744 feet and

East 2,289,385 feet, being within SE¼ of SE¼ of Section 7, T19N, R20E, MDB&M. (39) Stephens Ditch (Stevens) - By Nevada Coordinate System of 1983, West Zone,

North 14,862,524 feet and East 2,291,611 feet, being within SE¼ of SW¼ of Section 8, T19N, R20E, MDB&M.

(40) Glendale Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,862,252 feet and

East 2,291,882 feet, being within SE¼ of SW¼ of Section 8, T19N, R20E, MDB&M. (41) Hidden Valley Induction Well #4 - By Nevada Coordinate System of 1983, West Zone,

North 14,861,057 feet and East 2,295,828 feet, being within SW¼ of NW¼ of Section 16, T19N, R20E, MDB&M.

(42) Largomarsino - Murphy Ditch (S. Largomarsino) - By Nevada Coordinate System of 1983,

West Zone, North 14,858,576 feet and East 2,316,686 feet, being within NW¼ of SE¼ of Section 18, T19N, R21E, MDB&M.

(43) Largomarsino - Noce Ditch (N. Largomarsino) - By Nevada Coordinate System of 1983, West Zone,

North 14,858,813 feet and East 2,318,003 feet, being within NE¼ of SE¼ of Section 18, T19N, R21E, MDB&M.

(44) Groton Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,858,234 feet and

East 2,324,482 feet, being within NE¼ of SE¼ of Section 17, T19N, R21E, MDB&M. (45) Sheep Ranch Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,859,130 feet

and East 2,325,476 feet, being within NW¼ of SW¼ of Section 16, T19N, R21E, MDB&M. (46) McCarran North Side Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,866,397 feet and East 2,338,153 feet, being within NE¼ of NW¼ of Section 11, T19N, R21E, MDB&M.

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APPLICATION 9247 PERMIT 5392 LICENSE 4196 Page 5 of 12 (47) McCarran South Side Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,870,317 713 feet and East 2,342,460 338 feet, being within SW¼ of NW¼ of Section 1, T19N, R21E, MDB&M.

(48) Old Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,871,849 feet and

East 2,349,880 feet, being within NW¼ of NE¼ of Section 6, T19N, R22E, MDB&M. (49) Hill Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,876,905 feet and

East 2,354,774 feet, being within NW¼ of NE¼ of Section 32, T20N, R22E, MDB&M. (50) Tracy Power Plant - By Nevada Coordinate System of 1983, West Zone, North 14,877,698 feet and

East 2,359,590 feet, being within SE¼ of SW¼ of Section 28, T20N, R23ER22E, MDB&M. (51) Derby Dam & Truckee Canal - By Nevada Coordinate System of 1983, West Zone,

North 14,884885,928 141 feet and East 2,380,516 928 feet, being within NE¼ of SW¼ of Section 19, T20N, R23E, MDB&M.

(52) Preston Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,885,468 feet and

East 2,386,178 feet, being within SE¼ of NW¼ of Section 20, T20N, R23E, MDB&M. (53) Washburn Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,885,521 feet and

East 2,396,933 feet, being within SE¼ of NW¼ of Section 22, T20N, R23E, MDB&M. (54) Gregory Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,888,853 feet and

East 2,405,578 feet, being within SE¼ of SE¼ of Section 14, T20N, R23E, MDB&M. (55) Wadsworth Power Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,889,268 feet and East 2,406,873 feet, being within NW¼ of SW¼ of Section 13, T20N, R23E, MDB&M.

(56) Herman Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,891892,957 654 feet

and East 2,417,775 832 feet, being within NW¼ of NW¼ of Section 17, T20N, R24E, MDB&M. (57) Pierson Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,894,902 feet and

East 2,422,828 feet, being within NW¼ of SW¼ of Section 9, T20N, R24E, MDB&M. (58) Olinghouse No. 1 Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,897,868 feet and East 2,425,862 feet, being within NW¼ of NE¼ of Section 9, T20N, R24E, MDB&M.

(59) Fernley - By Nevada Coordinate System of 1983, West Zone, North 14,899,217 feet and

East 2,427,535 feet, being within SW¼ of NWSW¼ of Section 93, T20N, R24E, MDB&M. (60) Proctor Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,901900,290 772 feet

and East 2,428427,199 717 feet, being within SW¼ of NW¼ of Section 3, T20N, R24E, MDB&M. (61) Fellnagle Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,905,654 feet and

East 2,425,317 feet, being within NW¼ of SE¼ of Section 33, T21N, R24E, MDB&M. (62) Olinghouse No. 2 Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,914,468 feet and East 2,431,328 feet, being within SW¼ of SE¼ of Section 22, T21N, R24E, MDB&M.

(63) Gardella Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,922,553 feet and

East 2,428,236 feet, being within SW¼ of NW¼ of Section 15, T21N, R24E, MDB&M.

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APPLICATION 9247 PERMIT 5392 LICENSE 4196 Page 6 of 12 (64) Olinghouse No. 3 Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,923,152 feet and East 2,428,587 feet, being within SW¼ of NW¼ of Section 15, T21N, R24E, MDB&M.

(65) Indian Ditch (Nixon Ditch) - By Nevada Coordinate System of 1983, West Zone,

North 14,959,013 047 feet and East 2,408409,112 488 feet, being within SW¼ of SWNE¼ of Section 1812, T22N, R23E, MDB&M.

A DESCRIPTION OF THE LANDS OR THE PLACE WHERE SUCH WATER IS PUT TO BENEFICIAL USE IS AS FOLLOWS: Municipal, Domestic, Industrial, Stockwatering, Fish Culture, Water Quality, Recreational, and Fish and Wildlife Preservation and Enhancement uses within lands described as follows: T13N, R17E-R18E; T14N, R16E-R18E; T15N, R16E-R18E; T16N, R16E-R18E; T17N, R15E-R20E; T17N, R24E-R31E; T18N, R14E-R21E; T18N, R24E-R31E; T19N, R14E-R31E; T20N, R18E-R32E; T21N, R18E-R26E; T21N, R29E-R32E; T22N-T27N, R20E-R24E; and T28N, R23E-R24E; all within MDB&M. The maximum area irrigated in any one year under License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 99,000 net acres within a total gross area of 143,480 acres as follows: The maximum area irrigated in any one year under License 3723 (Application 5169) shall not exceed the following:

Truckee Meadows: 29,000 acres in the vicinity of Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; all within MDB&M, and Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E; all within MDB&M.

The maximum area irrigated in any one year under License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 96,800 net acres within a total gross area of 143,480 acres as follows:

Truckee Meadows: 26,800 net acres within a gross area of 36,340 acres in the vicinity of Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; all within MDB&M, and Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E; all within MDB&M.

The Irrigated Places of Use are shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board. The maximum area irrigated in any one year under License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 96,800 net acres within a total gross area of 143,480 acres as follows:

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APPLICATION 9247 PERMIT 5392 LICENSE 4196 Page 7 of 12 Truckee Meadows: 26,800 net acres within a gross area of 36,340 acres in the vicinity of

Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; and

Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of

Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E;

T20N, R24E-R31E;

all within MDB&M. Incidental Power use at the following locations: Stampede Powerhouse - within the SW¼ of NW¼ of Section 28, T19N, R17E, MDB&M; Farad Powerhouse - within the SE¼ of SE¼ of Section 12, T18N, R17E, MDB&M; Fleish Powerhouse - within the NE¼ of SE¼ of Section 30, T19N, R18E, MDB&M; Verdi Powerhouse - within the NW¼ of SE¼ of Section 8, T19N, R18E, MDB&M; and Washoe Powerhouse - within the SW¼ of SW¼ of Section 14, T19N, R18E, MDB&M. Places of Use as shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board. This license shall not be construed as conferring upon the licensee the right of access to the point of diversion. (0000022) Licensee shall consult with the Division of Water Rights as to whether licensee is an “urban water supplier” as defined in California Water Code section 10617. If licensee is an urban water supplier, then within one year from issuance of this amended license, licensee shall submit to the State Water Board its Urban Water Management Plan as prepared and adopted in conformance with California Water Code section 10610, et seq., or a comparable urban water management plan, as may be authorized under Nevada law that contains similar information. The plan may be supplemented by any additional information that may be required by the State Water Board. All cost-effective measures identified in the Urban Water Management Plan or comparable plan and any supplements thereto shall be implemented in accordance with the schedule for implementation found therein. (0000029A mod.) If it is determined after license issuance that the as-built conditions of the project are not correctly represented by the map(s) prepared to accompany the application, the licensee shall, at his expense, have the subject map(s) updated or replaced with equivalent as-built map(s). The revision(s) or new map(s) shall be prepared by a civil engineer or land surveyor registered or licensed in the State of California and shall meet the requirements prescribed in section 715 and sections 717 through 723 of the California Code of Regulations, Title 23. The revision(s) or map(s) shall be furnished upon request of the Deputy Director for Water Rights. (0000030) In compliance with section 5937 of the Fish and Game Code, if storage or diversion of water authorized by this license is by means of a dam, the licensee shall allow sufficient water at all times to pass through a fishway or, in the absence of a fishway, allow sufficient water to pass over, around, or through the dam to keep in good condition any fish that may be planted or exist below the dam; provided, that during a

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APPLICATION 9247 PERMIT 5392 LICENSE 4196 Page 8 of 12 period of low flow in the stream, upon approval of the State Department of Fish and Game, this requirement will be satisfied if sufficient water is passed through a culvert, waste gate, or over or around the dam to keep in good condition any fish that may be planted or exist below the dam if it is impracticable or detrimental to pass the water through a fishway. In the case of a reservoir, this provision shall not require the passage or release of water at a greater rate than the unimpaired natural inflow into the reservoir. (0140069) (0210069) To ensure that the bypass flow requirement imposed as a condition of water quality certification for the Farad Diversion Dam Replacement Project is met, no water shall be rediverted at the Farad Diversion Dam unless licensee bypasses a minimum flow of 150 cfs in the bypass reach below the Farad diversion dam, or total Truckee River flow immediately upstream of the diversion dam, whichever is less, in the operation area, or applicable bypass flow as it may be revised in the water quality certification for the project.

To ensure that the bypass flow requirement imposed as a condition of water quality certification for the Farad Diversion Dam Replacement Project is met, licensee shall bypass a minimum flow of 150 cubic feet

per second in the bypass reach below the Farad diversion dam, or total Truckee River flow immediately upstream of the diversion dam, whichever is less, in the operation area, or applicable bypass flow as it

may be revised in the water quality certification for the project.

No diversion shall be allowed at the points of diversion or rediversion authorized by this license unless the applicable bypass flows are met.

(0140400) Water diverted for Incidental Power use under this license is for nonconsumptive use and is to be released at the following locations: Stampede Powerhouse Return: Little Truckee River - By California Coordinate System of 1983, Zone 2,

North 2,303,127 feet and East 7,096,674 feet. Farad Powerhouse Return: Truckee River - By California Coordinate System of 1983, Zone 2, North 2,284,919 feet and East 7,117,723 feet. Fleish Powerhouse Return: Truckee River - By Nevada Coordinate System of 1983, West Zone,

North 14,848,874 feet and East 2,226,837 feet. Verdi Powerhouse Return: Truckee River - By Nevada Coordinate System of 1983, West Zone, North 14,864,373 feet and East 2,230,562 feet. Washoe Powerhouse Return: Truckee River - By Nevada Coordinate System of 1983, West Zone, North 14,857,794 feet and East 2,243,430 feet.

(0000111 mod.) Licensee shall measure and monitor amounts diverted, collected to storage, withdrawn from storage and rediverted for beneficial use under this permit/license. The licensee shall submit a plan for approval by the State Water Board that includes a description and location of the measuring devices, frequency of data collection, the methods for recording and reporting data to the State Water Board, and any calculations required to develop the records. The plan shall identify how the licensee will ensure that the total cumulative amount of water collected, stored and used at the reservoirs authorized under this license will not exceed the authorized amount under the license. The plan shall also identify how the amounts collected and beneficially used under all of the permits and licenses for coordinated reservoir storage under the Truckee River Operating Agreement (TROA) will be accounted for under the individual permits and licenses and any other bases of right. The plan shall be submitted and approved by the Deputy Director for Water Rights prior to diversion under this license. Licensee shall implement the plan upon approval. A record of such measurements shall be maintained by the licensee, and made available to interested persons upon reasonable request. A copy of the records shall be submitted to the State Water Board with the annual “Report of Licensee.”

(0100900)

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APPLICATION 9247 PERMIT 5392 LICENSE 4196 Page 9 of 12 To assure sufficient water flows in the Little Truckee River below Stampede Reservoir to protect public fishery resources, bypasses and releases shall be made from Stampede Reservoir into the Little Truckee River to maintain minimum flows therein as follows:

During Years of 60 and up to 130 percent normal predicted runoff, based on the official federal-state cooperative April snow surveys and water supply forecasts for the Truckee River watershed, (a) six cubic feet per second measured at a point one-quarter mile downstream from Stampede Dam, and (b) twelve cubic feet per second measured at a point near the confluence of the Little Truckee River with Boca Reservoir.

During years when the official predicted runoff for the Truckee River watershed is less than 60 percent of normal, (a) six cubic feet per second measured at a point one-quarter mile downstream from Stampede Dam, and (b) six cubic feet per second measured at a point near the confluence of the Little Truckee River with Boca Reservoir.

During years when the official predicted runoff for the Truckee River watershed is more than 130 percent of normal, (a) eight cubic feet per second measured at a point one-quarter mile downstream from Stampede Dam, and (b) sixteen cubic feet per second measured at a point near the confluence of the Little Truckee River with Boca Reservoir.

The flows to be maintained in the foregoing schedule shall become effective on May 1 of each year and continue to April 30 of the following year.

No diversion shall be allowed at the Stampede Reservoir points of diversion or rediversion authorized by this permit unless the applicable minimum instream flows in this term are met for water collected to storage in Stampede Reservoir. This condition does not require a bypass or release of water collected to storage in other reservoirs and subsequently transferred to Stampede Reservoir.

(0400400) Water stored in Independence Lake, Stampede Reservoir, and Boca Reservoir pursuant to pre-1914 permits issued by the Nevada State Engineer under Nevada Law with priority dates before December 19, 1914, and recognized pursuant to the provisions of California Water Code sections 1231 and 1232 shall not be considered as water stored pursuant to the provisions of this license.

(9990999) Licensee shall maintain the existing outlet pipes in Independence Lake, Stampede Reservoir, and Boca Reservoir in proper working order. No water shall be diverted or rediverted in Stampede Reservoir or in Boca Reservoir under this license if the outlet pipe for the particular reservoir in which water is sought to be diverted or rediverted is not in working order. (0050800) Diversions under this license shall be subject to the interstate allocation authorized under the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104 Stat. 3289) when the allocation becomes effective.

(0540900) Water can be initially diverted to storage under this license at Stampede Dam and Boca Dam only at times when flow to an equivalent volume is available at Independence Dam as verified by the TROA Administrator.

(0360800)

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APPLICATION 9247 PERMIT 5392 LICENSE 4196 Page 10 of 12 Due to the licensee’s ability to exchange water among water right holders under TROA, beneficial uses for water shall only be credited to the permit or license under which the water was originally diverted.

(9990999) All diversions, storage, use of water and operations under this license shall be in accordance with the provisions contained in this license, the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104 Stat. 3289) (Settlement Act), and the TROA, which is on file with the State Water Board. The Board retains jurisdiction for the purpose of amending the terms of this permit to conform to the terms of TROA and the Settlement Act.

(0430300) Diversion of water under this license is subject to regulation by the TROA Administrator appointed to enforce the terms and conditions of the TROA to the extent such regulation is not inconsistent with the terms and conditions of this license.

(000N001 mod.)

Licensee shall notify the Deputy Director for Water Rights, in writing, of any adjustments to operations or changes to TROA made in accordance with Article 13 of the TROA that will affect the diversion and use of water under this license.

(0490300) The State Water Board reserves continuing authority in the public interest to modify the terms and conditions of this license, including imposition of requirements to alter project facilities or operations and to modify instream flow releases, in the event of unforeseen adverse impacts to fish or wildlife. State Water Board action will be taken only after notice to interested parties and opportunity for hearing. (000M001)

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APPLICATION 9247 PERMIT 5392 LICENSE 4196 Page 11 of 12 The right hereby confirmed to the diversion and use of water is restricted to the point or points of diversion herein specified

and to the lands or place of use herein described.

Reports shall be filed promptly by the licensee on the appropriate forms which will be provided for the purpose from time to

time by the State Water Board.

Licensee shall allow representatives of the State Water Board and other parties, as may be authorized from time to time by the

State Water Board, reasonable access to project works to determine compliance with the terms of this license.

Pursuant to Water Code sections 100 and 275 and the common law public trust doctrine, all rights and privileges under this

license, including method of diversion, method of use, and quantity of water diverted, are subject to the continuing authority

of the State Water Board in accordance with law and in the interest of the public welfare to protect public trust uses and to

prevent waste, unreasonable use, unreasonable method of use, or unreasonable method of diversion of said water.

The continuing authority of the State Water Board may be exercised by imposing specific requirements over and above those

contained in this license with a view to eliminating waste of water and to meeting the reasonable water requirements of

licensee without unreasonable draft on the source. Licensee may be required to implement a water conservation plan,

features of which may include but not necessarily be limited to: (1) reusing or reclaiming the water allocated; (2) using water

reclaimed by another entity instead of all or part of the water allocated; (3) restricting diversions so as to eliminate

agricultural tailwater or to reduce return flow; (4) suppressing evaporation losses from water surfaces; (5) controlling

phreatophytic growth; and (6) installing, maintaining, and operating efficient water measuring devices to assure compliance

with the quantity limitations of this license and to determine accurately water use as against reasonable water requirement for

the authorized project. No action will be taken pursuant to this paragraph unless the State Water Board determines, after

notice to affected parties and opportunity for hearing, that such specific requirements are physically and financially feasible

and are appropriate to the particular situation.

The continuing authority of the State Water Board also may be exercised by imposing further limitations on the diversion and

use of water by the licensee in order to protect public trust uses. No action will be taken pursuant to this paragraph unless the

State Water Board determines, after notice to affected parties and opportunity for hearing, that such action is consistent with

California Constitution article X, section 2; is consistent with the public interest and is necessary to preserve or restore the

uses protected by the public trust.

The quantity of water diverted under this license is subject to modification by the State Water Board if, after notice to the licensee

and an opportunity for hearing, the State Water Board finds that such modification is necessary to meet water quality objectives

in water quality control plans which have been or hereafter may be established or modified pursuant to division 7 of the Water

Code. No action will be taken pursuant to this paragraph unless the State Water Board finds that: (1) adequate waste discharge

requirements have been prescribed and are in effect with respect to all waste discharges which have any substantial effect upon

water quality in the area involved, and (2) the water quality objectives cannot be achieved solely through the control of waste

discharges.

This license does not authorize any act which results in the taking of a threatened or endangered species or candidate species

or any act which is now prohibited, or becomes prohibited in the future, under either the California Endangered Species Act

(Fish and Game Code sections 2050 to 2089) or the federal Endangered Species Act (16 U.S.C.A. sections 1531 to 1544). If a

“take” will result from any act authorized under this water right, the licensee shall obtain authorization for an incidental take

prior to construction or operation of the project. Licensee shall be responsible for meeting all requirements of the state or

federal Endangered Species Acts for the project authorized under this license.

If construction or rehabilitation work is required for the diversion works covered by this license within the bed, channel, or

bank of the affected water body, the licensee shall enter into a streambed or lake alteration agreement with the State

Department of Fish and Game. Licensee shall submit a copy of the agreement, or waiver thereof, to the Division of Water

Rights prior to commencement of work. Compliance with the terms and conditions of the agreement is the responsibility of

the licensee.

This license is granted and the licensee accepts all rights herein confirmed subject to the following provisions of the Water Code:

Section 1625. Each license shall be in such form and contain such terms as may be prescribed by the State Water Board.

Section 1626. All licenses shall be under the terms and conditions of this division (of the Water Code).

Section 1627. A license shall be effective for such time as the water actually appropriated under it is used for a useful and

beneficial purpose in conformity with this division (of the Water Code) but no longer.

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APPLICATION 9247 PERMIT 5392 LICENSE 4196 Page 12 of 12 Section 1628. Every license shall include the enumeration of conditions therein which in substance shall include all of the

provisions of this article (of the Water Code) and the statement that any appropriator of water to whom a license is issued takes

the license subject to the conditions therein expressed.

Section 1629. Every licensee, if he accepts a license, does so under the conditions precedent that no value whatsoever in excess

of the actual amount paid to the State therefore shall at any time be assigned to or claimed for any license granted or issued under

the provisions of this division (of the Water Code), or for any rights granted or acquired under the provisions of this division (of

the Water Code), in respect to the regulation by any competent public authority of the services or the price of the services to be

rendered by any licensee or by the holder of any rights granted or acquired under the provisions of this division (of the Water

Code) or in respect to any valuation for purposes of sale to or purchase, whether through condemnation proceedings or otherwise,

by the State or any city, city and county, municipal water district, irrigation district, lighting district, or any political subdivision

of the State, of the rights and property of any licensee, or the possessor of any rights granted, issued, or acquired under the

provisions of this division (of the Water Code).

Section 1630. At any time after the expiration of twenty years after the granting of a license, the State or any city, city and

county, municipal water district, irrigation district, lighting district, or any political subdivision of the State shall have the right to

purchase the works and property occupied and used under the license and the works built or constructed for the enjoyment of the

rights granted under the license.

Section 1631. In the event that the State, or any city, city and county, municipal water district, irrigation district, lighting district,

or political subdivision of the State so desiring to purchase and the owner of the works and property cannot agree upon the

purchase price, the price shall be determined in such manner as is now or may hereafter be provided by law for determining the

value of property taken in eminent domain proceedings.

STATE WATER RESOURCES CONTROL BOARD

Barbara Evoy, Deputy Director

Division of Water Rights Dated:

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September 25, 2012

STATE OF CALIFORNIA CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY STATE WATER RESOURCES CONTROL BOARD

DIVISION OF WATER RIGHTS

Amended License for Diversion and Use of Water APPLICATION 5169 PERMIT 5286 LICENSE 3723 Page 1 of 11

THIS IS TO CERTIFY, That Washoe County Water Conservation District

295 Holcomb Avenue, Suite A Reno, NV 89502 has the right to the use of the waters of (1) Independence Creek and (2)(3) Little Truckee River in Nevada and Sierra Counties tributary to (1) Little Truckee River thence (2)(3) Truckee River thence Pyramid Lake for the purpose of Municipal, Domestic, Industrial, Irrigation, Stockwatering, Fish Culture, Water Quality, Recreational, Fish and Wildlife Preservation and Enhancement, and Incidental Power uses. This amended license is being issued in accordance with State Water Resources Control Board (State Water Board) Decision XXXX, adopted on XXXXXX. This amended license on Application 5169 filed on August 25, 1926 has been approved by the State Water Board SUBJECT TO PRIOR RIGHTS and to the limitations and conditions herein. Amended License 3723 supersedes the license originally issued for Boca Reservoir on May 4, 1953, which was perfected in accordance with the laws of California, the Regulations of the State Water Board, or its predecessor, and the terms of Permit 5286. The priority of this right dates from August 25, 1926. Proof of maximum beneficial use of water under this license was made as of November 24, 1952 (the date of inspection). The amount of water to which this right is entitled and hereby confirmed is limited to the amount actually beneficially used for the stated purposes and shall not exceed forty thousand, eight hundred fifty (40,850) acre-feet per annum to be collected in Independence Lake, Stampede Reservoir, and Boca Reservoir from about October 1 of each year to about July 1 of the succeeding year. The maximum withdrawal in any one year shall not exceed 40,850 acre-feet. The maximum amount of water collected to storage in Independence Lake, Stampede Reservoir, and Boca Reservoir under License 3723 (Application 5169), License 4196 (Application 9247), License 2607 (Application 9267), Permit 11605 (Application 15673), and permit issued pursuant to Application 31487 shall not exceed a total of 284,850 acre-feet per year. The capacities of Independence Lake, Stampede Reservoir, and Boca Reservoir covered by License 3723 (Application 5169), License 4196 (Application 9247), License 2607 (Application 9267), Permit 11605 (Application 15673), Permit 18320 (Application 26273), and permit issued pursuant to Application 31487 shall not exceed 17,500 acre-feet in Independence Lake, 226,500 acre-feet in Stampede Reservoir, and 41,100 acre-feet in Boca Reservoir. This license does not authorize collection of water to storage outside of the specified season to offset evaporation and seepage losses or for any other purpose.

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APPLICATION 5169 PERMIT 5286 LICENSE 3723 Page 2 of 12 The numbering for the points of diversion, points of rediversion, and places of storage for License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, are shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board.

1

THE POINT OF DIVERSION AND PLACE OF STORAGE ON INDEPENDENCE CREEK OF SUCH WATER IS LOCATED: (1) Independence Lake - By California Coordinate System of 1983, Zone 2, North 2,295,098 feet and

East 7,044,314 feet, being within NW¼ of SW¼ of Section 35, T19N, R15E, MDB&M. THE POINTS OF DIVERSION, POINTS OF REDIVERSION AND PLACES OF STORAGE ON LITTLE TRUCKEE RIVER OF SUCH WATER ARE LOCATED: (2) Stampede Reservoir - By California Coordinate System of 1983, Zone 2, North 2,304,477 feet and

East 7,096,882 feet, being within NW¼ of NW¼ of Section 28, T19N, R17E, MDB&M. (3) Boca Reservoir - By California Coordinate System of 1983, Zone 2, North 2,273,334 feet and

East 7,099,243 feet, being within SE¼ of SW¼ of Section 21, T18N, R17E, MDB&M. THE POINTS OF REDIVERSION ON THE TRUCKEE RIVER OF SUCH WATER ARE LOCATED: (5) Farad Power Plant Ditch & Flume - By California Coordinate System of 1983, Zone 2,

North 2,276,726 feet and East 7,119,940 feet, being within SW¼ of NW¼ of Section 30, T18N, R18E, MDB&M.

(6) Fleish Power Plant Ditch & Flume - By California Coordinate System of 1983, Zone 2,

North 2,297,211 feet and East 7,124,864 feet, being within NE¼ of SE¼ of Section 6, T18N, R18E, MDB&M.

(7) Steamboat Canal - By Nevada Coordinate System of 1983, West Zone, North 14,843,385 feet and

East 2,223,994 feet, being within NE¼ of SW¼ of Section 31, T19N, R18E, MDB&M. (8) Coldron Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,850,973 feet and

East 2,226,583 feet, being within SE¼ of NE¼ of Section 30, T19N, R18E, MDB&M. (9) Katz Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,853,083 feet and

East 2,226,202 feet, being within SE¼ of SE¼ of Section 19, T19N, R18E, MDB&M. (10) Verdi Power Plant, Ditch & Flume - By Nevada Coordinate System of 1983, West Zone,

North 14,853,117 feet and East 2,226,229 feet, being within SE¼ of SE¼ of Section 19, T19N, R18E, MDB&M.

(11) Washoe Power Plant Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,862,548 766 feet and East 2,235,859 824 feet, being within NW¼ of NE¼ of Section 16, T19N, R18E, MDB&M.

(12) Hogan Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,860,793 feet and

East 2,236,229 feet, being within SW¼ of NE¼ of Section 16, T19N, R18E, MDB&M.

1 Point of Diversion (4) is a point of diversion at Prosser Creek Dam, on Prosser Creek, for Amended License 10180 and the permit

issued pursuant to Application 31488. It is, therefore, intentionally not included in this amended license.

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APPLICATION 5169 PERMIT 5286 LICENSE 3723 Page 3 of 12 (13) Highland Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,863,059 feet and

East 2,236235,256 824 feet, being within SWNW¼ of SENE¼ of Section 916, T19N, R18E, MDB&M.

(14) Mastin Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,858,104 feet and East 2,244,534 feet, being within SE¼ of SW¼ of Section 14, T19N, R18E, MDB&M.

(15) Last Chance Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,860,796 feet and

East 2,247,614 feet, being within SE¼ of NE¼ of Section 14, T19N, R18E, MDB&M. (16) Sparks-Capurro Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,859,813 feet

and East 2,250,976 feet, being within NW¼ of SE¼ of Section 13, T19N, R18E, MDB&M. (17) Irwin-Mayberry Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,856,488 feet

and East 2,254,953 feet, being within NE¼ of NW¼ of Section 19, T19N, R19E, MDB&M. (18) Lake Ditch (Lake Southside) - By Nevada Coordinate System of 1983, West Zone,

North 14,856,917 feet and East 2,255,686 feet, being within NE¼ of NW¼ of Section 19, T19N, R19E MDB&M.

(19) South Side Canal - By Nevada Coordinate System of 1983, West Zone, North 14,858,528 feet and

East 2,259,680 feet, being within NE¼ of SW¼ of Section 17, T19N, R19E, MDB&M. (20) Orr Ditch, Orr Extension & Spanish Spring Valley Ditch - By Nevada Coordinate System of 1983,

West Zone, North 14,859,198 feet and East 2,260,521 feet, being within NE¼ of SW¼ of Section 17, T19N, R19E, MDB&M.

(21) Indian Flat Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,858,946 feet and

East 2,262,112 feet, being within NE¼ of SE¼ of Section 17, T19N, R19E, MDB&M. (22) Orr Ditch Pump Station - By Nevada Coordinate System of 1983, West Zone, North 14,859,008 feet

and East 2,262,704 feet, being within NE¼ of SE¼ of Section 17, T19N, R19E, MDB&M. (23) Reno Power Ditch & Flume - By Nevada Coordinate System of 1983, West Zone,

North 14,859,867 feet and East 2,267,642 feet, being within SE¼ of NE¼ of Section 16, T19N, R19E MDB&M.

(24) Countryman Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,862,075 feet and

East 2,268,033 feet, being within NE¼ of NE¼ of Section 16, T19N, R19E, MDB&M. (25) Chism Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,862,003 feet and

East 2,268,150 feet, being within NE¼ of NE¼ of Section 16, T19N, R19E, MDB&M. (26) English Mill Ditch & English Mill Tailrace Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,863,566 feet and East 2,271,673 feet, being within NW¼ of SE¼ of Section 10, T19N, R19E, MDB&M.

(27) Hayden Ditch or Court Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,862,824 feet and East 2,272,659 feet, being within SE¼ of SE¼ of Section 10, T19N, R19E MDB&M.

(28) Idlewild Pump Station - By Nevada Coordinate System of 1983, West Zone, North 14,862,625 feet

and East 2,273,168 feet, being within SE¼ of SE¼ of Section 10, T19N, R19E, MDB&M. (29) Sullivan & Kelly Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,863,999 feet

and East 2,276,707 feet, being within NW¼ of SE¼ of Section 11, T19N, R19E, MDB&M.

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APPLICATION 5169 PERMIT 5286 LICENSE 3723 Page 4 of 12 (30) Cochran Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,863,699 feet and

East 2,277,344 feet, being within NW¼ of SE¼ of Section 11, T19N, R19E, MDB&M. (31) Riverside Mill Ditch & Flume (Claim #10) - By Nevada Coordinate System of 1983, West Zone,

North 14,864,144 feet and East 2,277,365 feet, being within NW¼ of SE¼ of Section 11, T19N, R19E, MDB&M.

(32) Scott Ranch Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,865,010 feet and

East 2,279,290 feet, being within SW¼ of NW¼ of Section 12, T19N, R19E, MDB&M. (33) Abbee Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,866,265 feet and

East 2,283,562 feet, being within SE¼ of NE¼ of Section 12, T19N, R19E, MDB&M. (34) Perry Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,866,298 feet and

East 2,284,219 feet, being within SE¼ of NE¼ of Section 12, T19N, R19E, MDB&M. (35) Eastman Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,865,286 feet and

East 2,287,441 feet, being within SW¼ of NE¼ of Section 7, T19N, R20E, MDB&M. (36) No. Truckee Ditch (Glendale Plant) - By Nevada Coordinate System of 1983, West Zone,

North 14,865,173 feet and East 2,287,712 feet, being within SW¼ of NE¼ of Section 7, T19N, R20E, MDB&M.

(37) Sessions Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,865,057 feet and

East 2,287,842 feet, being within SW¼ of NE¼ of Section 7, T19N, R20E, MDB&M. (38) Pioneer Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,862,744 feet and

East 2,289,385 feet, being within SE¼ of SE¼ of Section 7, T19N, R20E, MDB&M. (39) Stephens Ditch (Stevens) - By Nevada Coordinate System of 1983, West Zone,

North 14,862,524 feet and East 2,291,611 feet, being within SE¼ of SW¼ of Section 8, T19N, R20E MDB&M.

(40) Glendale Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,862,252 feet and

East 2,291,882 feet, being within SE¼ of SW¼ of Section 8, T19N, R20E, MDB&M. (41) Hidden Valley Induction Well #4 - By Nevada Coordinate System of 1983, West Zone,

North 14,861,057 feet and East 2,295,828 feet, being within SW¼ of NW¼ of Section 16, T19N, R20E, MDB&M.

(42) Largomarsino - Murphy Ditch (S. Largomarsino) - By Nevada Coordinate System of 1983, West Zone,

North 14,858,576 feet and East 2,316,686 feet, being within NW¼ of SE¼ of Section 18, T19N, R21E, MDB&M.

(43) Largomarsino - Noce Ditch (N. Largomarsino) - By Nevada Coordinate System of 1983, West Zone,

North 14,858,813 feet and East 2,318,003 feet, being within NE¼ of SE¼ of Section 18, T19N, R21E, MDB&M.

(44) Groton Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,858,234 feet and

East 2,324,482 feet, being within NE¼ of SE¼ of Section 17, T19N, R21E, MDB&M. (45) Sheep Ranch Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,859,130 feet

and East 2,325,476 feet, being within NW¼ of SW¼ of Section 16, T19N, R21E, MDB&M. (46) McCarran North Side Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,866,397 feet and East 2,338,153 feet, being within NE¼ of NW¼ of Section 11, T19N, R21E MDB&M.

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APPLICATION 5169 PERMIT 5286 LICENSE 3723 Page 5 of 12 (47) McCarran South Side Ditch - By Nevada Coordinate System of 1983, West Zone,

North 14,870,317 713 feet and East 2,342,460 338 feet, being within SW¼ of NW¼ of Section 1, T19N, R21E MDB&M.

(48) Old Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,871,849 feet and East 2,349,880 feet, being within NW¼ of NE¼ of Section 6, T19N, R22E, MDB&M.

(49) Hill Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,876,905 feet and

East 2,354,774 feet, being within NW¼ of NE¼ of Section 32, T20N, R22E, MDB&M. (50) Tracy Power Plant - By Nevada Coordinate System of 1983, West Zone, North 14,877,698 feet

and East 2,359,590 feet, being within SE¼ of SW¼ of Section 28, T20N, R23ER22E, MDB&M. (51) Derby Dam & Truckee Canal - By Nevada Coordinate System of 1983, West Zone,

North 14,884885,928 141 feet and East 2,380,516 928 feet, being within NE¼ of SW¼ of Section 19, T20N, R23E, MDB&M.

(52) Preston Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,885,468 feet and

East 2,386,178 feet, being within SE¼ of NW¼ of Section 20, T20N, R23E, MDB&M. (53) Washburn Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,885,521 feet and

East 2,396,933 feet, being within SE¼ of NW¼ of Section 22, T20N, R23E, MDB&M. (54) Gregory Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,888,853 feet and

East 2,405,578 feet, being within SE¼ of SE¼ of Section 14, T20N, R23E, MDB&M. (55) Wadsworth Power Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,889,268 feet

and East 2,406,873 feet, being within NW¼ of SW¼ of Section 13, T20N, R23E, MDB&M. (56) Herman Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,891892,957 654 feet

and East 2,417,775 832 feet, being within NW¼ of NW¼ of Section 17, T20N, R24E, MDB&M. (57) Pierson Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,894,902 feet and

East 2,422,828 feet, being within NW¼ of SW¼ of Section 9, T20N, R24E, MDB&M. (58) Olinghouse No. 1 Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,897,868 feet

and East 2,425,862 feet, being within NW¼ of NE¼ of Section 9, T20N, R24E, MDB&M. (59) Fernley - By Nevada Coordinate System of 1983, West Zone, North 14,899,217 feet and

East 2,427,535 feet, being within SW¼ of NWSW¼ of Section 93, T20N, R24E, MDB&M. (60) Proctor Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,901900,290 772 feet

and East 2,428427,199 717 feet, being within SW¼ of NW¼ of Section 3, T20N, R24E, MDB&M. (61) Fellnagle Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,905,654 feet and

East 2,425,317 feet, being within NW¼ of SE¼ of Section 33, T21N, R24E, MDB&M. (62) Olinghouse No. 2 Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,914,468 feet

and East 2,431,328 feet, being within SW¼ of SE¼ of Section 22, T21N, R24E, MDB&M. (63) Gardella Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,922,553 feet and

East 2,428,236 feet, being within SW¼ of NW¼ of Section 15, T21N, R24E, MDB&M. (64) Olinghouse No. 3 Ditch - By Nevada Coordinate System of 1983, West Zone, North 14,923,152 feet

and East 2,428,587 feet, being within SW¼ of NW¼ of Section 15, T21N, R24E, MDB&M. (65) Indian Ditch (Nixon Ditch) - By Nevada Coordinate System of 1983, West Zone,

North 14,959,013 047 feet and East 2,408409,112 488 feet, being within SW¼ of SWNE¼ of Section 1812, T22N, R23E MDB&M.

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APPLICATION 5169 PERMIT 5286 LICENSE 3723 Page 6 of 12 A DESCRIPTION OF THE LANDS OR THE PLACE WHERE SUCH WATER IS PUT TO BENEFICIAL USE IS AS FOLLOWS: Municipal, Domestic, Industrial, Stockwatering, Fish Culture, Water Quality, Recreational, and Fish and Wildlife Preservation and Enhancement uses within lands described as follows: T13N, R17E-R18E; T14N, R16E-R18E; T15N, R16E-R18E; T16N, R16E-R18E; T17N, R15E-R20E; T17N, R24E-R31E; T18N, R14E-R21E; T18N, R24E-R31E; T19N, R14E-R31E; T20N, R18E-R32E; T21N, R18E-R26E; T21N, R29E-R32E; T22N-T27N, R20E-R24E; and T28N, R23E-R24E; all within MDB&M. The maximum area irrigated in any one year under License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 99,000 net acres within a total gross area of 143,480 acres as follows: The maximum area irrigated in any one year under License 3723 (Application 5169) shall not exceed the following:

Truckee Meadows: 29,000 acres in the vicinity of Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; all within MDB&M, and Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E; all within MDB&M.

The maximum area irrigated in any one year under License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 96,800 net acres within a total gross area of 143,480 acres as follows:

Truckee Meadows: 26,800 net acres within a gross area of 36,340 acres in the vicinity of Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; all within MDB&M, and Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E; all within MDB&M.

The Irrigated Places of Use are shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board. The maximum area irrigated in any one year under License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 96,800 net acres within a total gross area of 143,480 acres as follows: Truckee Meadows: 26,800 net acres within a gross area of 36,340 acres in the vicinity of

Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; and

Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows:

T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E;

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APPLICATION 5169 PERMIT 5286 LICENSE 3723 Page 7 of 12

all within MDB&M. Incidental Power use at the following locations: Verdi Powerhouse - within NW¼ of SE¼ of Section 8, T19N, R18E, MDB&M; Farad Powerhouse - within SE¼ of SE¼ of Section 12, T18N, R17E, MDB&M; Washoe Powerhouse - within SW¼ of SW¼ of Section 14, T19N, R18E, MDB&M. Stampede Powerhouse - within SW¼ of NW¼ of Section 28, T19N, R17E, MDB&M; and Fleish Powerhouse - within NE¼ of SE¼ of Section 30, T19N, R18E, MDB&M; Places of Use as shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board. Water diverted for Incidental Power use under this license is for nonconsumptive use and is to be released at the following locations: Stampede Powerhouse Return: Little Truckee River - By California Coordinate System of 1983, Zone 2,

North 2,303,127 feet and East 7,096,674 feet. Farad Powerhouse Return: Truckee River - By California Coordinate System of 1983, Zone 2, North 2,284,919 feet and East 7,117,723 feet. Fleish Powerhouse Return: Truckee River - By Nevada Coordinate System of 1983, West Zone,

North 14,848,874 feet and East 2,226,837 feet. Verdi Powerhouse Return: Truckee River - By Nevada Coordinate System of 1983, West Zone, North 14,864,373 feet and East 2,230,562 feet. Washoe Powerhouse Return: Truckee River - By Nevada Coordinate System of 1983, West Zone, North 14,857,794 feet and East 2,243,430 feet.

(0000111 mod.) This license shall not be construed as conferring upon the licensee the right of access to the point of diversion. (0000022) Licensee shall consult with the Division of Water Rights as to whether licensee is an “urban water supplier” as defined in California Water Code section 10617. If licensee is an urban water supplier, then within one year from issuance of this amended license, licensee shall submit to the State Water Board its Urban Water Management Plan as prepared and adopted in conformance with California Water Code section 10610, et seq., or a comparable urban water management plan, as may be authorized under Nevada law that contains similar information. The plan may be supplemented by any additional information that may be required by the State Water Board. All cost-effective measures identified in the Urban Water Management Plan or comparable plan and any supplements thereto shall be implemented in accordance with the schedule for implementation found therein.

(0000029A mod.) If it is determined after license issuance that the as-built conditions of the project are not correctly represented by the map(s) prepared to accompany the application, the licensee shall, at his expense, have the subject map(s) updated or replaced with equivalent as-built map(s). The revision(s) or new map(s) shall be prepared by a civil engineer or land surveyor registered or licensed in the State of California and shall meet the requirements prescribed in section 715 and sections 717 through 723 of the California Code of Regulations, Title 23. The revision(s) or map(s) shall be furnished upon request of the Deputy Director for Water Rights. (0000030)

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APPLICATION 5169 PERMIT 5286 LICENSE 3723 Page 8 of 12 In compliance with section 5937 of the Fish and Game Code, if storage or diversion of water authorized by this license is by means of a dam, the licensee shall allow sufficient water at all times to pass through a fishway or, in the absence of a fishway, allow sufficient water to pass over, around, or through the dam to keep in good condition any fish that may be planted or exist below the dam; provided, that during a period of low flow in the stream, upon approval of the State Department of Fish and Game, this requirement will be satisfied if sufficient water is passed through a culvert, waste gate, or over or around the dam to keep in good condition any fish that may be planted or exist below the dam if it is impracticable or detrimental to pass the water through a fishway. In the case of a reservoir, this provision shall not require the passage or release of water at a greater rate than the unimpaired natural inflow into the reservoir. (0140069) (0210069) No water shall be rediverted at the Farad Diversion Dam, except in compliance with the bypass flow requirement imposed as a condition of water quality certification for the Farad Diversion Dam Replacement Project. Further, no water shall be rediverted at the Farad Diversion Dam unless (1) licensee has submitted information to the Deputy Director for Water Rights demonstrating that the licensee has acquired access to redivert water or made arrangements with TMWA to divert water on licensee’s behalf, and (2) the Deputy Director for Water Rights advises the licensee that it has made a satisfactory demonstration.To ensure that the bypass flow requirement imposed as a condition of water quality certification for the Farad Diversion Dam Replacement Project is met, licensee shall bypass a minimum flow of 150 cubic feet per second in the bypass reach below the Farad diversion dam, or total Truckee River flow immediately upstream of the diversion dam, whichever is less, in the operation area, or applicable bypass flow as it may be revised in the water quality certification for the project. No diversion shall be allowed at the points of diversion or rediversion authorized by this license unless the applicable bypass flows are met.

(0140400) Licensee shall measure and monitor amounts diverted, collected to storage, withdrawn from storage and rediverted for beneficial use under this permit/license. The licensee shall submit a plan for approval by the State Water Board that includes a description and location of the measuring devices, frequency of data collection, the methods for recording and reporting data to the State Water Board, and any calculations required to develop the records. The plan shall identify how the licensee will ensure that the total cumulative amount of water collected, stored and used at the reservoirs authorized under this license will not exceed the authorized amount under the license. The plan shall also identify how the amounts collected and beneficially used under all of the permits and licenses for coordinated reservoir storage under the Truckee River Operating Agreement (TROA) will be accounted for under the individual permits and licenses and any other bases of right. The plan shall be submitted and approved by the Deputy Director for Water Rights prior to diversion under this license. Licensee shall implement the plan upon approval. A record of such measurements shall be maintained by the licensee, and made available to interested persons upon reasonable request. A copy of the records shall be submitted to the State Water Board with the annual “Report of Licensee.”

(0100900) Due to the licensee’s ability to exchange water among water right holders under TROA, beneficial uses for water shall only be credited to the permit or license under which the water was originally diverted.

(9990999) Diversions under this license shall be subject to the interstate allocation authorized under the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104 Stat. 3289) when the allocation becomes effective.

(0540900)

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APPLICATION 5169 PERMIT 5286 LICENSE 3723 Page 9 of 12 To assure sufficient water flows in the Little Truckee River below Stampede Reservoir to protect public fishery resources, bypasses or releases shall be made from Stampede Reservoir into the Little Truckee River to maintain minimum flows therein as follows:

During Years of 60 and up to 130 percent normal predicted runoff, based on the official federal-state cooperative April snow surveys and water supply forecasts for the Truckee River watershed, (a) six cubic feet per second measured at a point one-quarter mile downstream from Stampede Dam, and (b) twelve cubic feet per second measured at a point near the confluence of the Little Truckee River with Boca Reservoir.

During years when the official predicted runoff for the Truckee River watershed is less than 60 percent of normal, (a) six cubic feet per second measured at a point one-quarter mile downstream from Stampede Dam, and (b) six cubic feet per second measured at a point near the confluence of the Little Truckee River with Boca Reservoir.

During years when the official predicted runoff for the Truckee River watershed is more than 130 percent of normal, (a) eight cubic feet per second measured at a point one-quarter mile downstream from Stampede Dam, and (b) sixteen cubic feet per second measured at a point near the confluence of the Little Truckee River with Boca Reservoir.

The flows to be maintained in the foregoing schedule shall become effective on May 1 of each year and continue to April 30 of the following year.

No diversion shall be allowed at the Stampede Reservoir points of diversion or rediversion authorized by this license unless the applicable minimum instream flows in this term are met for water collected to storage in Stampede Reservoir. This condition does not require a bypass or release of water collected to storage in other reservoirs and subsequently transferred to Stampede Reservoir.

(0400400) Water stored in Independence Lake, Stampede Reservoir, and Boca Reservoir pursuant to pre-1914 permits issued by the Nevada State Engineer under Nevada Law with priority dates before December 19, 1914, and recognized pursuant to the provisions of California Water Code sections 1231 and 1232 shall not be considered as water stored pursuant to the provisions of this license.

(9990999) Licensee shall maintain the existing outlet pipes in Independence Lake, Stampede Reservoir, and Boca Reservoir in proper working order. No water shall be diverted in Independence Lake, or diverted or rediverted in Stampede Reservoir, under this license if the outlet pipe for the particular reservoir in which water is sought to be diverted or rediverted is not in working order. (0050800) This license is subject to the rights of persons diverting water for reasonable beneficial use under valid and properly exercised riparian and pre- and post-1914 appropriative claims of right, and other claims of right, that have a priority superior to the priority of Application 5169.

(9990800) All diversions, storage, use of water and operations under this license shall be in accordance with the provisions contained in this license, the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104 Stat. 3289) (Settlement Act), and the TROA, which is on file with the State Water Board. The Board retains jurisdiction for the purpose of amending the terms of this permit to conform to the terms of TROA and the Settlement Act.

(0430300)

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APPLICATION 5169 PERMIT 5286 LICENSE 3723 Page 10 of 12 Diversion of water under this license is subject to regulation by the TROA Administrator appointed to enforce the terms and conditions of the TROA to the extent such regulation is not inconsistent with the terms and conditions of this license.

(000N001 mod.) Licensee shall notify the Deputy Director for Water Rights, in writing, of any adjustments to operations or changes to TROA made in accordance with Article 13 of the TROA that will affect the diversion and use of water under this license.

(0490300) The State Water Board reserves continuing authority in the public interest to modify the terms and conditions of this license, including imposition of requirements to alter project facilities or operations and to modify instream flow releases, in the event of unforeseen adverse impacts to fish or wildlife. State Water Board action will be taken only after notice to interested parties and opportunity for hearing. (000M001)

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APPLICATION 5169 PERMIT 5286 LICENSE 3723 Page 11 of 12 The right hereby confirmed to the diversion and use of water is restricted to the point or points of diversion herein specified

and to the lands or place of use herein described.

Reports shall be filed promptly by the licensee on the appropriate forms which will be provided for the purpose from time to

time by the State Water Board.

Licensee shall allow representatives of the State Water Board and other parties, as may be authorized from time to time by the

State Water Board, reasonable access to project works to determine compliance with the terms of this license.

Pursuant to Water Code sections 100 and 275 and the common law public trust doctrine, all rights and privileges under this

license, including method of diversion, method of use, and quantity of water diverted, are subject to the continuing authority

of the State Water Board in accordance with law and in the interest of the public welfare to protect public trust uses and to

prevent waste, unreasonable use, unreasonable method of use, or unreasonable method of diversion of said water.

The continuing authority of the State Water Board may be exercised by imposing specific requirements over and above those

contained in this license with a view to eliminating waste of water and to meeting the reasonable water requirements of

licensee without unreasonable draft on the source. Licensee may be required to implement a water conservation plan,

features of which may include but not necessarily be limited to: (1) reusing or reclaiming the water allocated; (2) using water

reclaimed by another entity instead of all or part of the water allocated; (3) restricting diversions so as to eliminate

agricultural tailwater or to reduce return flow; (4) suppressing evaporation losses from water surfaces; (5) controlling

phreatophytic growth; and (6) installing, maintaining, and operating efficient water measuring devices to assure compliance

with the quantity limitations of this license and to determine accurately water use as against reasonable water requirement for

the authorized project. No action will be taken pursuant to this paragraph unless the State Water Board determines, after

notice to affected parties and opportunity for hearing, that such specific requirements are physically and financially feasible

and are appropriate to the particular situation.

The continuing authority of the State Water Board also may be exercised by imposing further limitations on the diversion and

use of water by the licensee in order to protect public trust uses. No action will be taken pursuant to this paragraph unless the

State Water Board determines, after notice to affected parties and opportunity for hearing, that such action is consistent with

California Constitution article X, section 2; is consistent with the public interest and is necessary to preserve or restore the

uses protected by the public trust.

The quantity of water diverted under this license is subject to modification by the State Water Board if, after notice to the licensee

and an opportunity for hearing, the State Water Board finds that such modification is necessary to meet water quality objectives

in water quality control plans which have been or hereafter may be established or modified pursuant to division 7 of the Water

Code. No action will be taken pursuant to this paragraph unless the State Water Board finds that: (1) adequate waste discharge

requirements have been prescribed and are in effect with respect to all waste discharges which have any substantial effect upon

water quality in the area involved, and (2) the water quality objectives cannot be achieved solely through the control of waste

discharges.

This license does not authorize any act which results in the taking of a threatened or endangered species or candidate species

or any act which is now prohibited, or becomes prohibited in the future, under either the California Endangered Species Act

(Fish and Game Code sections 2050 to 2089) or the federal Endangered Species Act (16 U.S.C.A. sections 1531 to 1544). If a

“take” will result from any act authorized under this water right, the licensee shall obtain authorization for an incidental take

prior to construction or operation of the project. Licensee shall be responsible for meeting all requirements of the state or

federal Endangered Species Acts for the project authorized under this license.

If construction or rehabilitation work is required for the diversion works covered by this license within the bed, channel, or

bank of the affected water body, the licensee shall enter into a streambed or lake alteration agreement with the State

Department of Fish and Game. Licensee shall submit a copy of the agreement, or waiver thereof, to the Division of Water

Rights prior to commencement of work. Compliance with the terms and conditions of the agreement is the responsibility of

the licensee.

This license is granted and the licensee accepts all rights herein confirmed subject to the following provisions of the Water Code:

Section 1625. Each license shall be in such form and contain such terms as may be prescribed by the State Water Board.

Section 1626. All licenses shall be under the terms and conditions of this division (of the Water Code).

Section 1627. A license shall be effective for such time as the water actually appropriated under it is used for a useful and

beneficial purpose in conformity with this division (of the Water Code) but no longer.

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APPLICATION 5169 PERMIT 5286 LICENSE 3723 Page 12 of 12 Section 1628. Every license shall include the enumeration of conditions therein which in substance shall include all of the

provisions of this article (of the Water Code) and the statement that any appropriator of water to whom a license is issued takes

the license subject to the conditions therein expressed.

Section 1629. Every licensee, if he accepts a license, does so under the conditions precedent that no value whatsoever in excess

of the actual amount paid to the State shall at any time be assigned to or claimed for any license granted or issued under the

provisions of this division (of the Water Code), or for any rights granted or acquired under the provisions of this division (of the

Water Code), in respect to the regulation by any competent public authority of the services or the price of the services to be

rendered by any licensee or by the holder of any rights granted or acquired under the provisions of this division (of the Water

Code) or in respect to any valuation for purposes of sale to or purchase, whether through condemnation proceedings or otherwise,

by the State or any city, city and county, municipal water district, irrigation district, lighting district, or any political subdivision

of the State, of the rights and property of any licensee, or the possessor of any rights granted, issued, or acquired under the

provisions of this division (of the Water Code).

Section 1630. At any time after the expiration of twenty years after the granting of a license, the State or any city, city and

county, municipal water district, irrigation district, lighting district, or any political subdivision of the State shall have the right to

purchase the works and property occupied and used under the license and the works built or constructed for the enjoyment of the

rights granted under the license.

Section 1631. In the event that the State, or any city, city and county, municipal water district, irrigation district, lighting district,

or political subdivision of the State so desiring to purchase and the owner of the works and property cannot agree upon the

purchase price, the price shall be determined in such manner as is now or may hereafter be provided by law for determining the

value of property taken in eminent domain proceedings.

STATE WATER RESOURCES CONTROL BOARD

Barbara Evoy, Deputy Director

Division of Water Rights Dated:

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September 25, 2012

STATE OF CALIFORNIA CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY

STATE WATER RESOURCES CONTROL BOARD

DIVISION OF WATER RIGHTS

AMENDED PERMIT FOR DIVERSION AND USE OF WATER

PERMIT 11605

APPLICATION 15673 of: United States Department of Interior, Bureau of Reclamation (MP-440) 2800 Cottage Way Sacramento, CA 95825

This amended permit is being issued in accordance with State Water Resources Control Board (State Water Board) Decision XXXX, adopted on XXXXXX. Therefore, an amended permit on Application 15673 filed for Stampede Reservoir on January 7, 1954 has been approved by the State Water Board SUBJECT TO PRIOR RIGHTS and to the limitations and conditions of this amended permit.

Permittee is hereby authorized to divert and use water as follows:

1. Source of water

Source: Tributary to:

(1) Independence Creek Little Truckee River thence Truckee River

(2)(3) Little Truckee River Truckee River thence Pyramid Lake

within the Counties of Sierra and Nevada

The numbering for the points of diversion, points of rediversion, and places of storage for this permit, License 3723 (Application 5169), License 4196 (Application 9247), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, are shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board.

1

2. Location of points of diversion and places of storage

By California Coordinate System of 1983, Zone 2

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(1) Independence Dam (Independence Lake) North 2,295,098 feet and East 7,044,314 feet

NW ¼ of SW ¼

35

19N

15E

MD

(2) Stampede Dam (Stampede Reservoir) North 2,304,477 feet and East 7,096,882 feet

NW ¼ of NW ¼

28

19N

17E

MD

(3) Boca Dam (Boca Reservoir) North 2,273,334 feet and East 7,099,243 feet

SE ¼ of SW ¼

21

18N

17E

MD

1 Place of use (4) is a point of diversion at Prosser Creek Dam, on Prosser Creek, for Amended License 10180 and the permit issued

pursuant to Application 31488. It is, therefore, intentionally not included in this amended permit.

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Application 15673 Permit 11605 Page 2 of 15

2a. Location of points of rediversion. Points (2) and (3) are on the Little Truckee River. Points (5) through

(65) are on the Truckee River. Points (66) and (67) are on the Carson River.

By California Coordinate System of 1983 in Zone 2

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(2) Stampede Dam North 2,304,477 feet and East 7,096,882 feet

NW ¼ of NW ¼

28

19N

17E

MD

(3) Boca Dam North 2,273,334 feet and East 7,099,243 feet

SE ¼ of SW ¼

21

18N

17E

MD

(5) Farad Power Plant Ditch & Flume North 2,276,726 feet and East 7,119,940 feet

SW ¼ of NW ¼

30

18N

18E

MD

(6) Fleish Power Plant Ditch & Flume North 2,297,211 feet and East 7,124,864 feet

NE ¼ of SE ¼

6

18N

18E

MD

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(7) Steamboat Canal North 14,843,385 feet and East 2,223,994 feet

NE ¼ of SW ¼

31

19N

18E

MD

(8) Coldron Ditch North 14,850,973 feet and East 2,226,583 feet

SE ¼ of NE ¼

30

19N

18E

MD

(8a) Truckee Meadows: Numerous points of rediversion between points (8) and (40)

SE ¼ of NE ¼

30

19N

18E

MD

SE ¼ of SW ¼

8

19N

20E

MD

(9) Katz Ditch North 14,853,083 feet and East 2,226,202 feet

SE ¼ of SE ¼

19

19N

18E

MD

(10) Verdi Power Plant, Ditch & Flume, North 14,853,117 feet and East 2,226,229 feet

SE ¼ of SE ¼

19

19N

18E

MD

(11) Washoe Power Plant Ditch North 14,862,548 766 feet and East 2,235,859 824 feet

NW ¼ of NE ¼

16

19N

18E

MD

(12) Hogan Ditch North 14,860,793 feet and East 2,236,229 feet

SW ¼ of NE ¼

16

19N

18E

MD

(13) Highland Ditch North 14,863862,059 766 feet and East 2,236235,256 824 feet

SW NW ¼ of SE NE

¼

916

19N

18E

MD

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Application 15673 Permit 11605 Page 3 of 15

Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(14) Mastin Ditch North 14,858,104 feet and East 2,244,534 feet

SE ¼ of SW ¼

14

19N

18E

MD

(15) Last Chance Ditch North 14,860,796 feet and East 2,247,614 feet

SE ¼ of NE ¼

14

19N

18E

MD

(16) Sparks-Capurro Ditch North 14,859,813 feet and East 2,250,976 feet

NW ¼ of SE ¼

13

19N

18E

MD

(17) Irwin-Mayberry Ditch North 14,856,488 feet and East 2,254,953 feet

NE ¼ of NW ¼

19

19N

19E

MD

(18) Lake Ditch (Lake Southside) North 14,856,917 feet and East 2,255,686 feet

NE ¼ of NW ¼

19

19N

19E

MD

(19) South Side Canal North 14,858,528 feet and East 2,259,680 feet

NE ¼ of SW ¼

17

19N

19E

MD

(20) Orr Ditch, Orr Extension & Spanish Spring Valley Ditch North 14,859,198 feet and East 2,260,521 feet

NE ¼ of SW ¼

17

19N

19E

MD

(21) Indian Flat Ditch North 14,858,946 feet and East 2,262,112 feet

NE ¼ of SE ¼

17

19N

19E

MD

(22) Orr Ditch Pump Station North 14,859,008 feet and East 2,262,704 feet

NE ¼ of SE ¼

17

19N

19E

MD

(23) Reno Power Ditch & Flume North 14,859,867 feet and East 2,267,642 feet

SE ¼ of NE ¼

16

19N

19E

MD

(24) Countryman Ditch North 14,862,075 feet and East 2,268,033 feet

NE ¼ of NE ¼

16

19N

19E

MD

(25) Chism Ditch North 14,862,003 feet and East 2,268,150 feet

NE ¼ of NE ¼

16

19N

19E

MD

(26) English Mill Ditch & English Mill Tailrace Ditch North 14,863,566 feet and East 2,271,673 feet

NW ¼ of SE ¼

10

19N

19E

MD

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Application 15673 Permit 11605 Page 4 of 15

Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(27) Hayden Ditch or Court Ditch North 14,862,824 feet and East 2,272,659 feet

SE ¼ of SE ¼

10

19N

19E

MD

(28) Idlewild Pump Station North 14,862,625 feet and East 2,273,168 feet

SE ¼ of SE ¼

10

19N

19E

MD

(29) Sullivan & Kelly Ditch North 14,863,999 feet and East 2,276,707 feet

NW ¼ of SE ¼

11

19N

19E

MD

(30) Cochran Ditch North 14,863,699 feet and East 2,277,344 feet

NW ¼ of SE ¼

11

19N

19E

MD

(31) Riverside Mill Ditch & Flume (Claim #10) North 14,864,144 feet and East 2,277,365 feet

NW ¼ of SE ¼

11

19N

19E

MD

(32) Scott Ranch Ditch North 14,865,010 feet and East 2,279,290 feet

SW ¼ of NW ¼

12

19N

19E

MD

(33) Abbee Ditch North 14,866,265 feet and East 2,283,562 feet

SE ¼ of NE ¼

12

19N

19E

MD

(34) Perry Ditch North 14,866,298 feet and East 2,284,219 feet

SE ¼ of NE ¼

12

19N

19E

MD

(35) Eastman Ditch North 14,865,286 feet and East 2,287,441 feet

SW ¼ of NE ¼

7

19N

20E

MD

(36) No. Truckee Ditch (Glendale Plant) North 14,865,173 feet and East 2,287,712 feet

SW ¼ of NE ¼

7

19N

20E

MD

(37) Sessions Ditch North 14,865,057 feet and East 2,287,842 feet

SW ¼ of NE ¼

7

19N

20E

MD

(38) Pioneer Ditch North 14,862,744 feet and East 2,289,385 feet

SE ¼ of SE ¼

7

19N

20E

MD

(39) Stephens Ditch (Stevens) North 14,862,524 feet and East 2,291,611 feet

SE ¼ of SW ¼

8

19N

20E

MD

(40) Glendale Ditch North 14,862,252 feet and East 2,291,882 feet

SE ¼ of SW ¼

8

19N

20E

MD

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Application 15673 Permit 11605 Page 5 of 15

Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(41) Hidden Valley Induction Well #4 North 14,861,057 feet and East 2,295,828 feet

SW ¼ of NW ¼

16

19N

20E

MD

(42) Largomarsino -Murphy Ditch (S. Largomarsino) North 14,858,576 feet and East 2,316,686 feet

NW ¼ of SE ¼

18

19N

21E

MD

(43) Largomarsino – Noce Ditch (N. Largomarsino) North 14,858,813 feet and East 2,318,003 feet

NE ¼ of SE ¼

18

19N

21E

MD

(44) Groton Ditch North 14,858,234 feet and East 2,324,482 feet

NE ¼ of SE ¼

17

19N

21E

MD

(45) Sheep Ranch Ditch North 14,859,130 feet and East 2,325,476 feet

NW ¼ of SW ¼

16

19N

21E

MD

(46) McCarran North Side Ditch North 14,866,397 feet and East 2,338,153 feet

NE ¼ of NW ¼

11

19N

21E

MD

(47) McCarran South Side Ditch North 14,870,317 713 feet and East 2,342,460 338 feet

SW ¼ of NW ¼

1

19N

21E

MD

(48) Old Ditch North 14,871,849 feet and East 2,349,880 feet

NW ¼ of NE ¼

6

19N

22E

MD

(49) Hill Ditch North 14,876,905 feet and East 2,354,774 feet

NW ¼ of NE ¼

32

20N

22E

MD

(50) Tracy Power Plant North 14,877,698 feet and East 2,359,590 feet

SE ¼ of SW ¼

28

20N

23E22

E

MD

(51) Derby Dam & Truckee Canal North 14,884885,928 141 feet and East 2,380,516 928 feet

NE ¼ of SW ¼

19

20N

23E

MD

(52) Preston Ditch North 14,885,468 feet and East 2,386,178 feet

SE ¼ of NW ¼

20

20N

23E

MD

(53) Washburn Ditch North 14,885,521 feet and East 2,396,933 feet

SE ¼ of NW ¼

22

20N

23E

MD

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Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(54) Gregory Ditch North 14,888,853 feet and East 2,405,578 feet

SE ¼ of SE ¼

14

20N

23E

MD

(55) Wadsworth Power Ditch North 14,889,268 feet and East 2,406,873 feet

NW ¼ of SW ¼

13

20N

23E

MD

(56) Herman Ditch North 14,891892,957 654 feet and East 2,417,775 832 feet

NW ¼ of NW ¼

17

20N

24E

MD

(57) Pierson Ditch North 14,894,902 feet and East 2,422,828 feet

NW ¼ of SW ¼

9

20N

24E

MD

(58) Olinghouse No. 1 Ditch North 14,897,868 feet and East 2,425,862 feet

NW ¼ of NE ¼

9

20N

24E

MD

(59) Fernley North 14,899,217 feet and East 2,427,535 feet

SW ¼ of NW SW ¼

93

20N

24E

MD

(60) Proctor Ditch North 14,901900,290 772 feet and East 2,428427,199 717 feet

SW ¼ of NW ¼

3

20N

24E

MD

(61) Fellnagle Ditch North 14,905,654 feet and East 2,425,317 feet

NW ¼ of SE ¼

33

21N

24E

MD

(62) Olinghouse No. 2 Ditch North 14,914,468 feet and East 2,431,328 feet

SW ¼ of SE ¼

22

21N

24E

MD

(63) Gardella Ditch North 14,922,553 feet and East 2,428,236 feet

SW ¼ of NW ¼

15

21N

24E

MD

(64) Olinghouse No. 3 Ditch North 14,923,152 feet and East 2,428,587 feet

SW ¼ of NW ¼

15

21N

24E

MD

(65) Indian Ditch (Nixon Ditch) North 14,959,013 047 feet and East 2,408409,112 488 feet

SW ¼ of SW NE ¼

1812

22N

23E

MD

(66) Newlands Project: Lahontan Dam North 14,839,256 feet and East 2,488,123 feet

Bearing N. 82º45’E. 3850 feet from SW corner

33

19N

26E

MD

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Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(67) Newlands Project: Numerous points of rediversion between Carson Diversion Dam North 14,849,892 feet and East 2,509,034 feet and Sagouspe Diversion Dam: North 14,867,558 feet and East 2,581,744 feet

Bearing N. 56º30’W. 1,885 feet from SW SE corner

19

19N

27E

MD

Bearing N. 43º00”E. 3,620 feet from SW corner

4

19N

29E

MD

3. Purpose of use 4. Place of use Township Range Base and Meridian

Municipal, Domestic, Industrial, Irrigation,* Stockwatering, Fish Culture, Water Quality, Recreational, Fish and Wildlife Preservation and Enhancement, and Incidental Power**

The places of use are shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board.

13N 17 & 18E MD

14N 16 – 18E MD

15N 16 – 18E MD

16N 16 – 18E MD

17N 15 – 20E,

24 – 31E

MD

18N 14 – 21E,

24 – 31E

MD

19N 14 – 31E MD

20N 18 – 32E MD

21N 18 – 26E,

29 – 32E

MD

22N 20 – 24E MD

23N 20 – 24E MD

24N 20 – 24E MD

25N 20 – 24E MD

26N 20 – 24E MD

27N 20 – 24E MD

28N 23 & 24E MD

* The maximum area irrigated in any one year under License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued

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pursuant to Application 31487 and Application 31488, shall not exceed a total of 99,000 net acres within a total gross area of 143,480 acres as follows: The maximum area irrigated in any one year under License 3723 (Application 5169) shall not exceed the following:

Truckee Meadows: 29,000 acres in the vicinity of Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; all within MDB&M, and Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E; all within MDB&M.

The maximum area irrigated in any one year under License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 96,800 net acres within a total gross area of 143,480 acres as follows:

Truckee Meadows: 26,800 net acres within a gross area of 36,340 acres in the vicinity of Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; all within MDB&M, and Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E; all within MDB&M.

The Irrigated Places of Use are shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board. Irrigation use: The maximum area irrigated in any one year under License 3723 (Application 5169), License

4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 96,800 net acres within a total gross area of 143,480 acres as follows:

Truckee Meadows - 26,800 net acres within a gross area of 36,340 acres in the vicinity of Reno, Nevada,

within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E, and Newlands Project - 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada,

within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E, all within MDB&M. **Incidental Power use at the following locations:

Power Plant Subdivision Section Township Range Base and Meridian

Stampede SW ¼ NW ¼ 28 19N 17E MD

Farad SE ¼ SE ¼ 12 18N 17E MD

Fleish NE ¼ SE ¼ 30 19N 18E MD

Verdi NW ¼ SE ¼ 8 19N 18E MD

Washoe SW ¼ SW ¼ 14 19N 18E MD

The places of use are shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board. 5. The water appropriated shall be limited to the quantity which can be beneficially used and shall not exceed

350 cubic feet per second (cfs) by direct diversion at Stampede Reservoir to be diverted from April 1 to

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November 1 of each year and 126,000 acre-feet per annum by storage to be collected from January 1 to December 31 of each year.

The total amount of water to be taken from the source (direct diversion plus collection to storage) shall not

exceed 126,000 acre-feet per year. (0000005F mod.)

6. The total quantity of water collected to storage under this permit, Permit 18320 (Application 26273), and permit issued pursuant to Application 31487 shall not exceed 226,500 acre-feet per annum.

(0000005L)

7. The total quantity of water collected to storage at Independence Lake, Stampede Reservoir, and Boca Reservoir under this permit, License 3723 (Application 5169), License 4196 (Application 9247), License 2607 (Application 9267), Permit 18320 (Application 26273), and permit issued pursuant to Application 31487 shall not exceed a total of 284,850 acre-feet per year.

(0000005M mod.) 8. The capacities of Independence Lake, Stampede Reservoir, and Boca Reservoir covered by this permit,

License 3723 (Application 5169), License 4196 (Application 9247), License 2607 (Application 9267), Permit 18320 (Application 26273), and permit issued pursuant to Application 31487 shall not exceed 17,500 acre-feet in Independence Lake, 226,500 acre-feet in Stampede Reservoir, and 41,100 acre-feet in Boca Reservoir.

(0000005N mod.) 9. The maximum simultaneous rate of direct diversion at Stampede Reservoir under this permit, Permit

18320 (Application 26273), and the permit issued pursuant to Application 31487 shall not exceed 350 cfs. (0000114C mod.)

10. The equivalent of the authorized continuous flow allowance for any 30-day period may be directly diverted

at Stampede Reservoir in a shorter time, provided there is no interference with other rights and instream beneficial uses, and provided further that all terms and conditions protecting instream beneficial uses are observed.

(0000027 mod.)

11. Construction work and complete application of the water to the authorized use shall be prosecuted with reasonable diligence and be completed by December 31, 2012.

(0000009) 12. This permit shall not be construed as conferring upon the permittee right of access to the point of

diversion. (0000022)

13. The State Water Resources Control Board, under its authority to conserve the public interest, retains

continuing authority over this permit to require permittee to develop and implement a water conservation program, after notice and opportunity for hearing. The requirements for this term may be satisfied by permittee’s compliance with any comprehensive water conservation program, approved by the State Water Resources Control Board, which may be imposed by a public agency.

(0000029) 14. Permittee shall consult with the Division of Water Rights as to whether permittee is an “urban water

supplier” as defined in California Water Code section 10617. If permittee is an urban water supplier, then within one year from issuance of this amended permit, permittee shall submit to the State Water Board its Urban Water Management Plan as prepared and adopted in conformance with California Water Code section 10610, et seq., or a comparable urban water management plan, as may be authorized under

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Nevada law that contains similar information. The plan may be supplemented by any additional information that may be required by the State Water Board

All cost-effective measures identified in the Urban Water Management Plan or comparable plan and any supplements thereto shall be implemented in accordance with the schedule for implementation found therein.

(0000029A mod.)

15.14. If it is determined after permit issuance that the as-built conditions of the project are not correctly represented by the map(s) prepared to accompany the application, permittee shall, at his expense have the subject map(s) updated or replaced with equivalent as-built map(s). Said revision(s) or new map(s) shall be prepared by a civil engineer or land surveyor registered or licensed in the State of California and shall meet the requirements prescribed in section 715 and sections 717 through 723 of the California Code of Regulations, Title 23. Said revision(s) or map(s) shall be furnished upon request of the Deputy Director for Water Rights.

(0000030) 16.15. In compliance with section 5937 of the Fish and Game Code, if storage or diversion of water

authorized by this permit is by means of a dam, permittee shall allow sufficient water at all times to pass through a fishway or, in the absence of a fishway, allow sufficient water to pass over, around, or through the dam to keep in good condition any fish that may be planted or exist below the dam; provided that, during a period of low flow in the stream, upon approval of the California Department of Fish and Game, this requirement will be satisfied if sufficient water is passed through a culvert, waste gate, or over or around the dam to keep in good condition any fish that may be planted or exist below the dam if it is impracticable or detrimental to pass the water through a fishway. In the case of a reservoir, this provision shall not require the passage or release of water at a greater rate than the unimpaired natural inflow into the reservoir.

(0140069) or (0210069)

16. No water shall be rediverted at the Farad Diversion Dam, except in compliance with the bypass flow

requirement imposed as a condition of water quality certification for the Farad Diversion Dam Replacement Project. Further, no water shall be rediverted at the Farad Diversion Dam unless (1) permittee has submitted information to the Deputy Director for Water Rights demonstrating that the permittee has acquired access to redivert water or made arrangements with TMWA to divert water on permittee’s behalf, and (2) the Deputy Director for Water Rights advises the permittee that it has made a satisfactory demonstration.

17. To ensure that the bypass flow requirement imposed as a condition of water quality certification for the Farad Diversion Dam Replacement Project is met, permittee shall bypass a minimum flow of 150 cfs in the bypass reach below the Farad diversion dam, or total Truckee River flow immediately upstream of the diversion dam, whichever is less, in the operation area, or applicable bypass flow as it may be revised in the water quality certification for the project. No diversion shall be allowed at the points of diversion or rediversion authorized by this permit unless the applicable bypass flows are met.

(0140400)

18.17. Water diverted for Incidental Power use under this permit is for nonconsumptive use and is to be released at the following locations:

Stampede Powerhouse Return: Little Truckee River: By California Coordinate System of 1983, Zone 2,

North 2,303,127 feet and East 7,096,674 feet. Farad Powerhouse Return: Truckee River: By California Coordinate System of 1983, Zone 2, North 2,284,919 feet and East 7,117,723 feet. Fleish Powerhouse Return: Truckee River: By Nevada Coordinate System of 1983, West Zone,

North 14,848,874 feet and East 2,226,837 feet.

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Verdi Powerhouse Return: Truckee River: Nevada Coordinate System of 1983, West Zone, North 14,864,373 feet and East 2,230,562 feet. Washoe Powerhouse Return: Truckee River: Nevada Coordinate System of 1983, West Zone, North 14,857,794 feet and East 2,243,430 feet.

(0000111 mod.) 19. Insofar as the appropriation of water under this permit is concerned, Stampede Reservoir shall not be

operated by the permittee separately or in conjunction with other reservoirs of the Truckee River Basin so as to prevent in the future such consumptive beneficial uses of water as are presently being made in the California portion of said basin and such consumptive beneficial uses as are presently being made of water from Little Truckee River to Sierra Valley, Echo Lake to American River Basin, and Marlette Lake to Virginia City, Nevada; provided that the foregoing is a condition on the operation of Stampede Reservoir under this permit and is not to be construed as a definition of the legality of any water right.

(0000800) 20. In connection with the appropriative rights acquired under this permit, and with the operation of Stampede

Reservoir pursuant to this permit separately or in conjunction with other reservoirs on the Truckee River system, there is hereby reserved to water users in California the right of proceeding under California law to acquire appropriative rights to not in excess of 30,000 acre-feet annually of the presently unappropriated water of the Truckee River system for beneficial use in the Truckee River Basin in California. Such appropriative rights so reserved shall be limited annually to 30/156ths of the presently unappropriated water available on the Little Truckee River at the Stampede Dam site, but such amount of water may be stored or diverted at any location or locations on the Truckee River system to the extent that unappropriated water exists; provided, however, that return flow from such water to Lake Tahoe, or the Truckee River or its live tributaries, as may be determined by this Board, shall be credited to such California reservation. The appropriative right hereby reserved for use in California shall be deemed to have the same date of priority as any rights which may be consummated pursuant to Application 15673. Appropriative rights acquired to water of the Truckee River system in addition to the appropriative rights described above shall be junior in priority thereto.

(0000800) 21.18. Water stored in Independence Lake, Stampede Reservoir, and Boca Reservoir pursuant to pre-1914

permits issued by the Nevada State Engineer under Nevada Law with priority dates before December 19, 1914, and recognized pursuant to the provisions of California Water Code sections 1231 and 1232 shall not be considered as water stored pursuant to the provisions of this Permit.

(9990999)

22.19. Permittee shall maintain the existing outlet pipes for Independence Lake, Stampede Reservoir, and Boca Reservoir in proper working order. No water shall be diverted in Independence Lake, or diverted or rediverted in Boca Reservoir, under this permit if the outlet pipe for the particular reservoir in which water is sought to be diverted or rediverted is not in working order.

(000000S mod.) 23.20. Permittee shall keep adequate records of (1) the amounts of water beneficially used for the various

purposes for which the water has been appropriated, (2) the amount of water stored in each reservoir (Independence Lake, Stampede Reservoir and Boca Reservoir) in lieu of storage at other existing reservoirs, and (3) the amount of water stored in each reservoir (Independence Lake, Stampede Reservoir and Boca Reservoir) in addition to the amount described in (2) of this condition. Copies of such records shall be furnished annually to the State Water Board together with the annual progress reports.

(0100300) 24.21. Permittee shall measure and monitor amounts diverted, collected to storage, withdrawn from storage

and rediverted for beneficial use under this permit. The permittee shall submit a plan for approval by the State Water Board that includes a description and location of the measuring devices, frequency of data collection, the methods for recording and reporting data to the State Water Board, and any calculations required to develop the records. The plan shall identify how the permittee will ensure that the total

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cumulative amount of water collected, stored and used at the reservoirs authorized under this permit will not exceed the authorized amount under the permit. The plan shall also identify how the amounts collected and beneficially used under all of the permits and licenses for coordinated reservoir storage under TROA will be accounted for under the individual permits and licenses and any other bases of right. The plan shall be submitted and approved by the Deputy Director for Water Rights prior to diversion under this permit. Permittee shall implement the plan upon approval. A record of such measurements shall be maintained by the permittee, and made available to interested persons upon reasonable request. A copy of the records shall be submitted to the State Water Board with the annual “Progress Report by Permittee.”

(0100900) 25.22. To assure sufficient water flows in the Little Truckee River below Stampede Reservoir to protect public

fishery resources, bypasses or releases shall be made from Stampede Reservoir into the Little Truckee River to maintain minimum flows therein as follows:

During Years of 60 and up to 130 percent normal predicted runoff, based on the official federal-state

cooperative April snow surveys and water supply forecasts for the Truckee River watershed, (a) six cubic feet per second measured at a point one-quarter mile downstream from Stampede Dam, and (b) twelve cubic feet per second measured at a point near the confluence of the Little Truckee River with Boca Reservoir.

During years when the official predicted runoff for the Truckee River watershed is less than 60 percent

of normal, (a) six cubic feet per second measured at a point one-quarter mile downstream from Stampede Dam, and (b) six cubic feet per second measured at a point near the confluence of the Little Truckee River with Boca Reservoir.

During years when the official predicted runoff for the Truckee River watershed is more than 130

percent of normal, (a) eight cubic feet per second measured at a point one-quarter mile downstream from Stampede Dam, and (b) sixteen cubic feet per second measured at a point near the confluence of the Little Truckee River with Boca Reservoir.

The flows to be maintained in the foregoing schedule shall become effective on May 1 of each year

and continue to April 30 of the following year. No diversion shall be allowed at the Stampede Reservoir points of diversion or rediversion authorized

by this permit unless the applicable minimum instream flows in this term are met for water collected to storage in Stampede Reservoir. This condition does not require a bypass or release of water collected to storage in other reservoirs and subsequently transferred to Stampede Reservoir. Reclamation shall maintain an account of all water stored in Stampede Reservoir, and shall separately account for water transferred to the reservoir from other reservoirs. The account shall document when the transfer water is released from Stampede Reservoir storage for beneficial use. Failure to document the transfer of water into and out of Stampede Reservoir shall result in all water in the reservoir being subject to the bypass or release criteria for Stampede Reservoir.

(0400400)

26.23. In the operation of Stampede Reservoir pursuant to this permit separately or in conjunction with other reservoirs of the Truckee River system, the permittee shall, within the bounds of the authorized Washoe Project and its economic feasibility, cooperate with the U.S. Fish and Wildlife Service and the California Department of Fish and Game in preventing, as much as possible, without injury to the Washoe Project, damage to and providing for the enhancement of the existing fisheries and wildlife resources of the Truckee River Basin in California.

(0000300) 27. If and when an interstate compact covering the distribution and use of the waters of the Truckee and

Carson Rivers is approved by the Legislatures of the States of California and Nevada and is consented to by Congress, the operation of Stampede Reservoir shall be in conformance with such compact, and the

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terms and conditions set forth in this permit which are in conflict thereto shall not apply. The Board retains jurisdiction for the purpose of amending the terms of this permit to conform to the terms of such compact.

(0430600)

28.24. This permit is subject to the rights of persons diverting water for reasonable beneficial use under valid

and properly exercised riparian and pre- and post-1914 appropriative claims of right, and other claims of right, that have a priority superior to the priority of Application 15673.

(9990800)

29.25. Diversions under this permit shall be subject to the interstate allocation authorized under the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104 Stat. 3289) when the allocation becomes effective.

(0540900)

30.26. Due to the permittee’s ability to exchange water among water right holders under the Truckee River Operating Agreement (TROA), beneficial uses for water shall only be credited to the permit or license under which the water was originally diverted.

(9990999) 31.27. All diversions, storage, use of water and operations under this permit shall be in accordance with the

provisions contained in this permit, the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104 Stat. 3289) (Settlement Act), and TROA, which is on file with the State Water Board. The Board retains jurisdiction for the purpose of amending the terms of this permit to conform to the terms of TROA and the Settlement Act.

(0430300) 32.28. Diversion of water under this permit is subject to regulation by the TROA Administrator appointed to

enforce the terms and conditions of the TROA to the extent such regulation is not inconsistent with the

terms and conditions of this permit. (000000N mod.)

33.29. Permittee shall notify the Deputy Director for Water Rights, in writing, of any adjustments to operations

or changes to TROA made in accordance with Article Thirteen of TROA that will affect the diversion and use of water under this permit.

(0490300) 34.30. The State Water Board reserves jurisdiction in the public interest to modify the terms and conditions of

this permit, including imposition of requirements to alter project facilities or operations and to modify instream flow releases, in the event of unforeseen adverse impacts to fish or wildlife. State Water Board action will be taken only after notice to interested parties and opportunity for hearing.

(000000M)

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THIS PERMIT IS ALSO SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS: A. The amount authorized for appropriation may be reduced in the license if investigation warrants.

(0000006) B. Progress reports shall be submitted promptly by permittee when requested by the State Water Board

until a license is issued. (0000010)

C. Permittee shall allow representatives of the State Water Board and other parties, as may be authorized

from time to time by said State Water Board, reasonable access to project works to determine compliance with the terms of this permit.

(0000011)

D. Pursuant to California Water Code sections 100 and 275, and the common law public trust doctrine, all rights and privileges under this permit and under any license issued pursuant thereto, including method of diversion, method of use, and quantity of water diverted, are subject to the continuing authority of State Water Board in accordance with law and in the interest of the public welfare to protect public trust uses and to prevent waste, unreasonable use, unreasonable method of use, or unreasonable method of diversion of said water. The continuing authority of the State Water Board may be exercised by imposing specific requirements over and above those contained in this permit with a view to eliminating waste of water and to meeting the reasonable water requirements of permittee without unreasonable draft on the source. Permittee may be required to implement a water conservation plan, features of which may include but not necessarily be limited to (1) reusing or reclaiming the water allocated; (2) using water reclaimed by another entity instead of all or part of the water allocated; (3) restricting diversions so as to eliminate agricultural tailwater or to reduce return flow; (4) suppressing evaporation losses from water surfaces; (5) controlling phreatophytic growth; and (6) installing, maintaining, and operating efficient water measuring devices to assure compliance with the quantity limitations of this permit and to determine accurately water use as against reasonable water requirements for the authorized project. No action will be taken pursuant to this paragraph unless the State Water Board determines, after notice to affected parties and opportunity for hearing, that such specific requirements are physically and financially feasible and are appropriate to the particular situation.

The continuing authority of the State Water Board also may be exercised by imposing further limitations on the diversion and use of water by the permittee in order to protect public trust uses. No action will be taken pursuant to this paragraph unless the State Water Board determines, after notice to affected parties and opportunity for hearing, that such action is consistent with California Constitution Article X, Section 2; is consistent with the public interest; and is necessary to preserve or restore the uses protected by the public trust.

(0000012) E. The quantity of water diverted under this permit and under any license issued pursuant thereto is subject

to modification by the State Water Board if, after notice to the permittee and an opportunity for hearing, the State Water Board finds that such modification is necessary to meet water quality objectives in water quality control plans which have been or hereafter may be established or modified pursuant to Division 7 of the Water Code. No action will be taken pursuant to this paragraph unless the State Water Board finds that (1) adequate waste discharge requirements have been prescribed and are in effect with respect to all waste discharges which have any substantial effect upon water quality in the area involved, and (2) the water quality objectives cannot be achieved solely through the control of waste discharges.

(0000013) F. This permit does not authorize any act that results in the taking of a threatened or endangered species

or candidate species or any act that is now prohibited, or becomes prohibited in the future, under either the California Endangered Species Act (Fish & G. Code, §§ 2050 - 2097) or the federal Endangered

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Species Act (16 U.S.C.A. §§ 1531 - 1544). If a "take" will result from any act authorized under this water right, the permittee shall obtain authorization for an incidental take prior to construction or operation of the project. Permittee shall be responsible for meeting all requirements of the state and federal Endangered Species Acts for the project authorized under this permit.

(0000014)

G. Permittee shall maintain records of the amount of water diverted and used to enable the State

Water Board to determine the amount of water that has been applied to beneficial use pursuant to Water Code Section 1605.

(0000015) H. No work shall commence and no water shall be diverted, stored or used under this permit until a copy of

a stream or lake alteration agreement between the State Department of Fish and Game and the permittee is filed with the Division of Water Rights. Compliance with the terms and conditions of the agreement is the responsibility of the permittee. If a stream or lake agreement is not necessary for this permitted project, the permittee shall provide the Division of Water Rights a copy of a waiver signed by the State Department of Fish and Game.

(0000063) This permit is issued and permittee takes it subject to the following provisions of the Water Code: Section 1390. A permit shall be effective for such time as the water actually appropriated under it is used for a useful and beneficial purpose in conformity with this division (of the Water Code), but no longer. Section 1391. Every permit shall include the enumeration of conditions therein which in substance shall include all of the provisions of this article and the statement that any appropriator of water to whom a permit is issued takes it subject to the conditions therein expressed. Section 1392. Every permittee, if he accepts a permit, does so under the conditions precedent that no value whatsoever in excess of the actual amount paid to the State therefor shall at any time be assigned to or claimed for any permit granted or issued under the provisions of this division (of the Water Code), or for any rights granted or acquired under the provisions of this division (of the Water Code), in respect to the regulation by any competent public authority of the services or the price of the services to be rendered by any permittee or by the holder of any rights granted or acquired under the provisions of this division (of the Water Code) or in respect to any valuation for purposes of sale to or purchase, whether through condemnation proceedings or otherwise, by the State or any city, city and county, municipal water district, irrigation district, lighting district, or any political subdivision of the State, of the rights and property of any permittee, or the possessor of any rights granted, issued, or acquired under the provisions of this division (of the Water Code). STATE WATER RESOURCES CONTROL BOARD

Barbara Evoy

Deputy Director for Water Rights Dated:

Page 170: Cover Letter 9-25-2012 Truckee River Revised Draft Decision · Revised Draft Decision Revised Draft Permits for Applications 31487 and 31488 Revised Draft Amended Permit 11605 (Application

September 25, 2012

STATE OF CALIFORNIA CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY

STATE WATER RESOURCES CONTROL BOARD

DIVISION OF WATER RIGHTS

PERMIT FOR DIVERSION AND USE OF WATER

PERMIT ##### APPLICATION 31487 of: United States Department of Interior, Bureau of Reclamation (MP-440) 2800 Cottage Way Sacramento, CA 95825

This permit is being issued in accordance with State Water Resources Control Board (State Water Board) Decision XXXX, adopted on XXXX XX, 2012. Therefore, Application 31487 filed on January 8, 2004 has been approved by the State Water Board SUBJECT TO PRIOR RIGHTS and to the limitations and conditions of this permit. Permittee is hereby authorized to divert and use water as follows: 1. Source of water

Source: Tributary to: (1) Independence Creek Little Truckee River

(2)(3) Little Truckee River Truckee River thence Pyramid Lake

within the Counties of Sierra and Nevada The numbering for the points of diversion, points of rediversion, and places of storage for this permit, License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permit issued pursuant to Application 31488, are shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board.

1

2. Location of points of diversion and places of storage

By California Coordinate System of 1983 in Zone 2

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(1) Independence Dam (Independence Lake), North 2,295,098 feet and East 7,044,314 feet

NW ¼ of SW ¼

35

19N

15E

MD

(2) Stampede Dam (Stampede Reservoir), North 2,304,477 feet and East 7,096,882 feet

NW ¼ of NW ¼

28

19N

17E

MD

(3) Boca Dam (Boca Reservoir), North 2,273,334 feet and East 7,099,243 feet

SE ¼ of SW ¼

21

18N

17E

MD

1 Point of Diversion (4) is a point of diversion at Prosser Creek Dam, on Prosser Creek, for License 10180 and the permit issued pursuant

to Application 31488. It is, therefore, intentionally not included in this permit.

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2a. Location of points of rediversion. Points (2) and (3) are on the Little Truckee River. Points (5) through

(65) are on the Truckee River.

By California Coordinate System of 1983 in Zone 2

40-acre subdivision of public land survey or projection thereof

Section Township Range Base and Meridian

(2) Stampede Dam North 2,304,477 feet and East 7,096,882 feet

NW ¼ of NW ¼

28

19N

17E

MD

(3) Boca Dam North 2,273,334 feet and East 7,099,243 feet

SE ¼ of SW ¼

21

18N

17E

MD

(5) Farad Power Plant Ditch & Flume North 2,276,726 feet and East 7,119,940 feet

SW ¼ of NW ¼

30

18N

18E

MD

(6) Fleish Power Plant Ditch & Flume North 2,297,211 feet and East 7,124,864 feet

NE ¼ of SE ¼

6

18N

18E

MD

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(7) Steamboat Canal North 14,843,385 feet and East 2,223,994 feet

NE ¼ of SW ¼

31

19N

18E

MD

(8) Coldron Ditch North 14,850,973 feet and East 2,226,583 feet

SE ¼ of NE ¼

30

19N

18E

MD

(9) Katz Ditch North 14,853,083 feet and East 2,226,202 feet

SE ¼ of SE ¼

19

19N

18E

MD

(10) Verdi Power Plant, Ditch & Flume North 14,853,117 feet and East 2,226,229 feet

SE ¼ of SE ¼

19

19N

18E

MD

(11) Washoe Power Plant Ditch North 14,862,548 766 feet and East 2,235,859 824 feet

NW ¼ of NE ¼

16

19N

18E

MD

(12) Hogan Ditch North 14,860,793 feet and East 2,236,229 feet

SW ¼ of NE ¼

16

19N

18E

MD

(13) Highland Ditch North 14,863862,059 766 feet and East 2,236235,256 824 feet

SW NW ¼ of SE NE

¼

916

19N

18E

MD

(14) Mastin Ditch North 14,858,104 feet and East 2,244,534 feet

SE ¼ of SW ¼

14

19N

18E

MD

(15) Last Chance Ditch North 14,860,796 feet and East 2,247,614 feet

SE ¼ of NE ¼

14

19N

18E

MD

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Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section Township Range Base and Meridian

(16) Sparks-Capurro Ditch North 14,859,813 feet and East 2,250,976 feet

NW ¼ of SE ¼

13

19N

18E

MD

(17) Irwin-Mayberry Ditch North 14,856,488 feet and East 2,254,953 feet

NE ¼ of NW ¼

19

19N

19E

MD

(18) Lake Ditch (Lake Southside) North 14,856,917 feet and East 2,255,686 feet

NE ¼ of NW ¼

19

19N

19E

MD

(19) South Side Canal North 14,858,528 feet and East 2,259,680 feet

NE ¼ of SW ¼

17

19N

19E

MD

(20) Orr Ditch, Orr Extension & Spanish Spring Valley Ditch North 14,859,198 feet and East 2,260,521 feet

NE ¼ of SW ¼

17

19N

19E

MD

(21) Indian Flat Ditch North 14,858,946 feet and East 2,262,112 feet

NE ¼ of SE ¼

17

19N

19E

MD

(22) Orr Ditch Pump Station North 14,859,008 feet and East 2,262,704 feet

NE ¼ of SE ¼

17

19N

19E

MD

(23) Reno Power Ditch & Flume North 14,859,867 feet and East 2,267,642 feet

SE ¼ of NE ¼

16

19N

19E

MD

(24) Countryman Ditch North 14,862,075 feet and East 2,268,033 feet

NE ¼ of NE ¼

16

19N

19E

MD

(25) Chism Ditch North 14,862,003 feet and East 2,268,150 feet

NE ¼ of NE ¼

16

19N

19E

MD

(26) English Mill Ditch & English Mill Tailrace Ditch North 14,863,566 feet and East 2,271,673 feet

NW ¼ of SE ¼

10

19N

19E

MD

(27) Hayden Ditch or Court Ditch North 14,862,824 feet and East 2,272,659 feet

SE ¼ of SE ¼

10

19N

19E

MD

(28) Idlewild Pump Station North 14,862,625 feet and East 2,273,168 feet

SE ¼ of SE ¼

10

19N

19E

MD

(29) Sullivan & Kelly Ditch North 14,863,999 feet and East 2,276,707 feet

NW ¼ of SE ¼

11

19N

19E

MD

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Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section Township Range Base and Meridian

(30) Cochran Ditch North 14,863,699 feet and East 2,277,344 feet

NW ¼ of SE ¼

11

19N

19E

MD

(31) Riverside Mill Ditch & Flume (Claim #10) North 14,864,144 feet and East 2,277,365 feet

NW ¼ of SE ¼

11

19N

19E

MD

(32) Scott Ranch Ditch North 14,865,010 feet and East 2,279,290 feet

SW ¼ of NW ¼

12

19N

19E

MD

(33) Abbee Ditch North 14,866,265 feet and East 2,283,562 feet

SE ¼ of NE ¼

12

19N

19E

MD

(34) Perry Ditch North 14,866,298 feet and East 2,284,219 feet

SE ¼ of NE ¼

12

19N

19E

MD

(35) Eastman Ditch North 14,865,286 feet and East 2,287,441 feet

SW ¼ of NE ¼

7

19N

20E

MD

(36) No. Truckee Ditch (Glendale Plant) North 14,865,173 feet and East 2,287,712 feet

SW ¼ of NE ¼

7

19N

20E

MD

(37) Sessions Ditch North 14,865,057 feet and East 2,287,842 feet

SW ¼ of NE ¼

7

19N

20E

MD

(38) Pioneer Ditch North 14,862,744 feet and East 2,289,385 feet

SE ¼ of SE ¼

7

19N

20E

MD

(39) Stephens Ditch (Stevens) North 14,862,524 feet and East 2,291,611 feet

SE ¼ of SW ¼

8

19N

20E

MD

(40) Glendale Ditch North 14,862,252 feet and East 2,291,882 feet

SE ¼ of SW ¼

8

19N

20E

MD

(41) Hidden Valley Induction Well #4 North 14,861,057 feet and East 2,295,828 feet

SW ¼ of NW ¼

16

19N

20E

MD

(42) Largomarsino -Murphy Ditch (S. Largomarsino) North 14,858,576 feet and East 2,316,686 feet

NW ¼ of SE ¼

18

19N

21E

MD

(43) Largomarsino – Noce Ditch (N. Largomarsino) North 14,858,813 feet and East 2,318,003 feet

NE ¼ of SE ¼

18

19N

21E

MD

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Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(44) Groton Ditch North 14,858,234 feet and East 2,324,482 feet

NE ¼ of SE ¼

17

19N

21E

MD

(45) Sheep Ranch Ditch North 14,859,130 feet and East 2,325,476 feet

NW ¼ of SW ¼

16

19N

21E

MD

(46) McCarran North Side Ditch North 14,866,397 feet and East 2,338,153 feet

NE ¼ of NW ¼

11

19N

21E

MD

(47) McCarran South Side Ditch North 14,870,317 713 feet and East 2,342,460 338 feet

SW ¼ of NW ¼

1

19N

21E

MD

(48) Old Ditch North 14,871,849 feet and East 2,349,880 feet

NW ¼ of NE ¼

6

19N

22E

MD

(49) Hill Ditch North 14,876,905 feet and East 2,354,774 feet

NW ¼ of NE ¼

32

20N

22E

MD

(50) Tracy Power Plant North 14,877,698 feet and East 2,359,590 feet

SE ¼ of SW ¼

28

20N

23E22

E

MD

(51) Derby Dam & Truckee Canal North 14,884885,928 141 feet and East 2,380,516 928 feet

NE ¼ of SW ¼

19

20N

23E

MD

(52) Preston Ditch North 14,885,468 feet and East 2,386,178 feet

SE ¼ of NW ¼

20

20N

23E

MD

(53) Washburn Ditch North 14,885,521 feet and East 2,396,933 feet

SE ¼ of NW ¼

22

20N

23E

MD

(54) Gregory Ditch North 14,888,853 feet and East 2,405,578 feet

SE ¼ of SE ¼

14

20N

23E

MD

(55) Wadsworth Power Ditch North 14,889,268 feet and East 2,406,873 feet

NW ¼ of SW ¼

13

20N

23E

MD

(56) Herman Ditch North 14,891892,957 654 feet and East 2,417,775 832 feet

NW ¼ of NW ¼

17

20N

24E

MD

(57) Pierson Ditch North 14,894,902 feet and East 2,422,828 feet

NW ¼ of SW ¼

9

20N

24E

MD

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Location of points of rediversion (continued)

By Nevada Coordinate System of 1983, West Zone

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(58) Olinghouse No. 1 Ditch North 14,897,868 feet and East 2,425,862 feet

NW ¼ of NE ¼

9

20N

24E

MD

(59) Fernley North 14,899,217 feet and East 2,427,535 feet

SW ¼ of NW SW ¼

93

20N

24E

MD

(60) Proctor Ditch North 14,901900,290 772 feet and East 2,428427,199 717 feet

SW ¼ of NW ¼

3

20N

24E

MD

(61) Fellnagle Ditch North 14,905,654 feet and East 2,425,317 feet

NW ¼ of SE ¼

33

21N

24E

MD

(62) Olinghouse No. 2 Ditch North 14,914,468 feet and East 2,431,328 feet

SW ¼ of SE ¼

22

21N

24E

MD

(63) Gardella Ditch North 14,922,553 feet and East 2,428,236 feet

SW ¼ of NW ¼

15

21N

24E

MD

(64) Olinghouse No. 3 Ditch North 14,923,152 feet and East 2,428,587 feet

SW ¼ of NW ¼

15

21N

24E

MD

(65) Indian Ditch (Nixon Ditch) North 14,959,013 047 feet and East 2,408,112 feet

SW ¼ of SW NE ¼

1812

22N

23E

MD

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3. Purpose of use 4. Place of use Township Range Base and Meridian

Municipal, Domestic, Industrial, Irrigation,* Stockwatering, Fish Culture, Water Quality, Recreational, Fish and Wildlife Preservation and Enhancement, and Incidental Power**

The place of use is shown on map [MAP NUMBER] filed with the State Water Board, dated [DATE].

13N 17 & 18E MD

14N 16 – 18E MD

15N 16 – 18E MD

16N 16 – 18E MD

17N 15 – 20E,

24 – 31E

MD

18N 14 – 21E,

24 – 31E

MD

19N 14 – 31E MD

20N 18 – 32E MD

21N 18 – 26E,

29 – 32E

MD

22N 20 – 24E MD

23N 20 – 24E MD

24N 20 – 24E MD

25N 20 – 24E MD

26N 20 – 24E MD

27N 20 – 24E MD

28N 23 & 24E MD

* The maximum area irrigated in any one year under License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 99,000 net acres within a total gross area of 143,480 acres as follows: The maximum area irrigated in any one year under License 3723 (Application 5169) shall not exceed the following:

Truckee Meadows: 29,000 acres in the vicinity of Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; all within MDB&M, and Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E; all within MDB&M.

The maximum area irrigated in any one year under License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 96,800 net acres within a total gross area of 143,480 acres as follows:

Truckee Meadows: 26,800 net acres within a gross area of 36,340 acres in the vicinity of

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Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; all within MDB&M, and Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E; all within MDB&M.

The Irrigated Places of Use are shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board. The maximum area irrigated in any one year under this permit, License 3723 (Application 5169), License 4196

(Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permit issued pursuant to Application 31488, shall not exceed a total of 96,800 net acres within a total gross area of 143,480 acres as follows:

Truckee Meadows - 26,800 net acres within a gross area of 36,340 acres in the vicinity of Reno, Nevada,

within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E, and Newlands Project - 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada,

within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E, all within MDB&M. ** Incidental Power use at the following locations:

Powerhouse Subdivision Section Township Range Base and Meridian

Stampede SW ¼ NW ¼ 28 19N 17E MD

Farad SE ¼ SE ¼ 12 18N 17E MD

Fleish NE ¼ SE ¼ 30 19N 18E MD

Verdi NW ¼ SE ¼ 8 19N 18E MD

Washoe SW ¼ SW ¼ 14 19N 18E MD

5. The water appropriated shall be limited to the quantity that can be beneficially used and shall not exceed

350 cubic feet per second by direct diversion at Stampede Reservoir and 226,500 acre-feet per annum by storage at Independence Lake, Stampede Reservoir, and Boca Reservoir from January 1 to December 31 of each year.

The total amount of water to be taken from the source (direct diversion plus collection to storage) shall not exceed 226,500 acre-feet per year.

(0000005E mod.)

6. The total quantity of water collected to storage under this permit, Permit 11605 (Application 15673), and Permit 18320 (Application 26273) shall not exceed 226,500 acre-feet per year.

(0000005L) 7. The total quantity of water collected to storage at Independence Lake, Stampede Reservoir, and Boca

Reservoir under this permit, License 3723 (Application 5169), License 4196 (Application 9247), License 2607 (Application 9267), Permit 11605 (Application 15673), and Permit 18320 (Application 26273) shall not exceed a total of 284,850 acre-feet per year.

(0000005M mod.)

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8. The capacities of Independence Lake, Stampede Reservoir, and Boca Reservoir covered by this permit,

License 3723 (Application 5169), License 4196 (Application 9247), License 2607 (Application 9267), Permit 11605 (Application 15673), and Permit 18320 (Application 26273) shall not exceed 17,500 acre-feet in Independence Lake, 226,500 acre-feet in Stampede Reservoir, and 41,100 acre-feet in Boca Reservoir.

(0000005N mod.)

9. The maximum simultaneous rate of direct diversion at Stampede Reservoir under this permit, Permit 11605 (Application 15673), and Permit 18320 (Application 26273) shall not exceed 350 cfs.

(0000114c mod.)

10. The equivalent of the authorized continuous flow allowance for any 30-day period may be directly diverted at Stampede Reservoir in a shorter time, provided there is no interference with other rights and instream beneficial uses, and provided further that all terms and conditions protecting instream beneficial uses are observed.

(0000027)

11. Construction work and complete application of the water to the authorized use shall be prosecuted with reasonable diligence and be completed by December 31, 2022.

(0000009) 12. This permit shall not be construed as conferring upon the permittee right of access to the point of

diversion. (0000022)

13. Permittee shall consult with the Division of Water Rights as to whether permittee is an “urban water

supplier” as defined in California Water Code section 10617. If permittee is an urban water supplier, then within one year from issuance of this permit, permittee shall submit to the State Water Board its Urban Water Management Plan as prepared and adopted in conformance with California Water Code section 10610, et seq., or a comparable urban water management plan, as may be authorized under Nevada law that contains similar information. The plan may be supplemented by any additional information that may be required by the State Water Board.

All cost-effective measures identified in the Urban Water Management Plan or comparable plan and any

supplements thereto shall be implemented in accordance with the schedule for implementation found therein.

(0000029A mod.) 14.13. If it is determined after permit issuance that the as-built conditions of the project are not correctly

represented by the map(s) prepared to accompany the application, permittee shall, at his expense have the subject map(s) updated or replaced with equivalent as-built map(s). Said revision(s) or new map(s) shall be prepared by a civil engineer or land surveyor registered of licensed in the State of California and shall meet the requirements prescribed in section 715 and sections 717 through 723 of the California Code of Regulations, Title 23. Said revision(s) or map(s) shall be furnished upon request of the Chief, Division of Water Rights.

(0000030) 15.14. In compliance with section 5937 of the Fish and Game Code, if storage or diversion of water authorized

by this permit is by means of a dam, permittee shall allow sufficient water at all times to pass through a fishway or, in the absence of a fishway, allow sufficient water to pass over, around, or through the dam to keep in good condition any fish that may be planted or exist below the dam; provided that, during a period of low flow in the stream, upon approval of the California Department of Fish and Game, this requirement will be satisfied if sufficient water is passed through a culvert, waste gate, or over or around the dam to keep in good condition any fish that may be planted or exist below the dam if it is impracticable or detrimental to pass the water through a fishway. In the case of a reservoir, this provision shall not require the passage or release of water at a greater rate than the unimpaired natural inflow into the reservoir.

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(0140069)

or (0210069) 16.15. No water shall be rediverted at the Farad Diversion Dam, except in compliance with the bypass

flow requirement imposed as a condition of water quality certification for the Farad Diversion Dam Replacement Project. Further, no water shall be rediverted at the Farad Diversion Dam unless (1) permittee has submitted information to the Deputy Director for Water Rights demonstrating that the permittee has acquired access to redivert water or made arrangements with TMWA to divert water on permittee’s behalf, and (2) the Deputy Director for Water Rights advises the permittee that it has made a satisfactory demonstration.To ensure that the bypass flow requirement imposed as a condition of water quality certification for the Farad Diversion Dam Replacement Project is met, permittee shall bypass a minimum flow of 150 cfs in the bypass reach below the Farad diversion dam, or total Truckee River flow immediately upstream of the diversion dam, whichever is less, in the operation area, or applicable bypass flow as it may be revised in the water quality certification for the project.

No diversion shall be allowed at the points of diversion or rediversion authorized by this permit/license unless the applicable bypass flows are met.

(0140400)

17.16. Water diverted for Incidental Power use under this permit is for nonconsumptive use and is to be released at the following locations: Stampede Powerhouse Return: Little Truckee River: By California Coordinate System of 1983, Zone 2,

North 2,303,127 feet and East 7,096,674 feet. Farad Powerhouse Return: Truckee River: By California Coordinate System of 1983, Zone 2, North 2,284,919 feet and East 7,117,723 feet. Fleish Powerhouse Return: Truckee River: By Nevada Coordinate System of 1983, West Zone,

North 14,848,874 feet and East 2,226,837 feet. Verdi Powerhouse Return: Truckee River: Nevada Coordinate System of 1983, West Zone, North 14,864,373 feet and East 2,230,562 feet. Washoe Powerhouse Return: Truckee River: Nevada Coordinate System of 1983, West Zone, North 14,857,794 feet and East 2,243,430 feet.

(0000111 mod.)

18.17. The permittee shall obtain all necessary state and local agency permits required by other agencies prior to construction and diversion of water. Copies of such permits and approvals shall be forwarded to the Chief, Division of Water Rights.

(0000203) 19.18. Water stored in Independence Lake, Stampede Reservoir, and Boca Reservoir pursuant to pre-

1914 permits issued by the Nevada State Engineer under Nevada Law with priority dates before December 19, 1914, and recognized pursuant to the provisions of California Water Code sections 1231 and 1232 shall not be considered as water stored pursuant to the provisions of this permit.

(9990999) 20.19. Permittee shall maintain the existing outlet pipes for Independence Lake, Stampede Reservoir, and

Boca Reservoir in proper working order. No water shall be diverted in Independence Lake, or diverted or rediverted in Boca Reservoir, under this permit if the outlet pipe for the particular reservoir in which water is sought to be diverted or rediverted is not in working order.

(000000S mod.)

21.20. Permittee shall measure and monitor amounts diverted, collected to storage, withdrawn from storage and rediverted for beneficial use under this permit. The permittee shall submit a plan for approval by the State Water Board that includes a description and location of the measuring devices, frequency of data collection, the methods for recording and reporting data to the State Water Board, and any calculations required to develop the records. The plan shall identify how the permittee will ensure that the total

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cumulative amount of water collected, stored and used at the reservoirs authorized under this permit will not exceed the authorized amount under the permit. The plan shall also identify how the amounts collected and beneficially used under all of the permits and licenses for coordinated reservoir storage under TROA will be accounted for under the individual permits and licenses and any other bases of right. The plan shall be submitted and approved by the Deputy Director for Water Rights prior to diversion under this permit. Permittee shall implement the plan upon approval. A record of such measurements shall be maintained by the permittee, and made available to interested persons upon reasonable request. A copy of the records shall be submitted to the State Water Board with the annual “Progress Report by Permittee.”

(0100900)

22.21. To assure sufficient water flows in the Little Truckee River below Stampede Reservoir to protect public fishery resources, bypasses or releases shall be made from Stampede Reservoir into the Little Truckee River to maintain minimum flows therein as follows:

During Years of 60 and up to 130 percent normal predicted runoff, based on the official federal-state cooperative April snow surveys and water supply forecasts for the Truckee River watershed, (a) six cubic feet per second measured at a point one-quarter mile downstream from Stampede Dam, and (b) twelve cubic feet per second measured at a point near the confluence of the Little Truckee River with Boca Reservoir. During years when the official predicted runoff for the Truckee River watershed is less than 60 percent of normal, (a) six cubic feet per second measured at a point one-quarter mile downstream from Stampede Dam, and (b) six cubic feet per second measured at a point near the confluence of the Little Truckee River with Boca Reservoir. During years when the official predicted runoff for the Truckee River watershed is more than 130 percent of normal, (a) eight cubic feet per second measured at a point one-quarter mile downstream from Stampede Dam, and (b) sixteen cubic feet per second measured at a point near the confluence of the Little Truckee River with Boca Reservoir. The flows to be maintained in the foregoing schedule shall become effective on May 1 of each year and continue to April 30 of the following year. No diversion shall be allowed at the Stampede Reservoir points of diversion or rediversion authorized by this permit unless the applicable minimum instream flows in this term are met for water collected to storage in Stampede Reservoir. This condition does not require a bypass or release of water collected to storage in other reservoirs and subsequently transferred to Stampede Reservoir. Reclamation shall maintain an account of all water stored in Stampede Reservoir, and shall separately account for water transferred to the reservoir from other reservoirs. The account shall document when the transfer water is released from Stampede Reservoir storage for beneficial use. Failure to document the transfer of water into and out of Stampede Reservoir shall result in all water in the reservoir being subject to the bypass or release criteria for Stampede Reservoir.

(0400400)

23.22. Diversions under this permit shall be subject to interstate allocation authorized under the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104 Stat. 3289) when the allocation becomes effective.

(9990900)

24.23. Due to the permittee’s ability to exchange water among water right holders under the Truckee River Operating Agreement (TROA), beneficial uses for water shall only be credited to the permit or license under which the water was originally diverted.

(9990999)

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25.24. All diversions, storage, use of water and operations under this permit shall be in accordance with the

provisions contained in this permit, the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104 Stat. 3289) (Settlement Act), and the TROA, which is on file with the State Water Board. The Board retains jurisdiction for the purpose of amending the terms of this permit to conform to the terms of TROA and the Settlement Act.

(0430300) 26.25. Diversion of water under this permit is subject to regulation by the TROA Administrator

appointed to enforce the terms and conditions of the TROA to the extent such regulation is not inconsistent with the terms and conditions of this permit.

(000000N mod.)

27.26. Permittee shall notify the Deputy Director for Water Rights, in writing, of any adjustments to operations or changes to TROA made in accordance with Article Thirteen of TROA that will affect the diversion and use of water under this permit.

(0490300) 28.27. The State Water Resources Control Board reserves jurisdiction in the public interest to modify the terms

and conditions of this permit, including imposition of requirements to alter project facilities or operations and to modify instream flow releases, in the event of unforeseen adverse impacts to fish or wildlife. Board action will be taken only after notice to interested parties and opportunity for hearing.

(000000M)

THIS PERMIT IS ALSO SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS: A. The amount authorized for appropriation may be reduced in the license if investigation warrants.

(0000006) B. Progress reports shall be submitted promptly by permittee when requested by the State Water Board

until a license is issued. (0000010)

C. Permittee shall allow representatives of the State Water Board and other parties, as may be authorized

from time to time by said State Water Board, reasonable access to project works to determine compliance with the terms of this permit.

(0000011)

D. Pursuant to California Water Code sections 100 and 275, and the common law public trust doctrine, all rights and privileges under this permit and under any license issued pursuant thereto, including method of diversion, method of use, and quantity of water diverted, are subject to the continuing authority of State Water Board in accordance with law and in the interest of the public welfare to protect public trust uses and to prevent waste, unreasonable use, unreasonable method of use, or unreasonable method of diversion of said water. The continuing authority of the State Water Board may be exercised by imposing specific requirements over and above those contained in this permit with a view to eliminating waste of water and to meeting the reasonable water requirements of permittee without unreasonable draft on the source. Permittee may be required to implement a water conservation plan, features of which may include but not necessarily be limited to (1) reusing or reclaiming the water allocated; (2) using water reclaimed by another entity instead of all or part of the water allocated; (3) restricting diversions so as to eliminate agricultural tailwater or to reduce return flow; (4) suppressing evaporation losses from water surfaces; (5) controlling phreatophytic growth; and (6) installing, maintaining, and operating efficient water measuring devices to assure compliance with the quantity limitations of this permit and to determine accurately water use as against reasonable water requirements for the authorized project. No action will be taken pursuant to this paragraph unless the State Water Board determines, after notice to affected

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parties and opportunity for hearing, that such specific requirements are physically and financially feasible and are appropriate to the particular situation.

The continuing authority of the State Water Board also may be exercised by imposing further limitations on the diversion and use of water by the permittee in order to protect public trust uses. No action will be taken pursuant to this paragraph unless the State Water Board determines, after notice to affected parties and opportunity for hearing, that such action is consistent with California Constitution Article X, Section 2; is consistent with the public interest; and is necessary to preserve or restore the uses protected by the public trust.

(0000012) E. The quantity of water diverted under this permit and under any license issued pursuant thereto is subject

to modification by the State Water Board if, after notice to the permittee and an opportunity for hearing, the State Water Board finds that such modification is necessary to meet water quality objectives in water quality control plans which have been or hereafter may be established or modified pursuant to Division 7 of the Water Code. No action will be taken pursuant to this paragraph unless the State Water Board finds that (1) adequate waste discharge requirements have been prescribed and are in effect with respect to all waste discharges which have any substantial effect upon water quality in the area involved, and (2) the water quality objectives cannot be achieved solely through the control of waste discharges.

(0000013) F. This permit does not authorize any act that results in the taking of a threatened or endangered species

or candidate species or any act that is now prohibited, or becomes prohibited in the future, under either the California Endangered Species Act (Fish & G. Code, §§ 2050 - 2097) or the federal Endangered Species Act (16 U.S.C.A. §§ 1531 - 1544). If a "take" will result from any act authorized under this water right, the permittee shall obtain authorization for an incidental take prior to construction or operation of the project. Permittee shall be responsible for meeting all requirements of the state and federal Endangered Species Acts for the project authorized under this permit.

(0000014) G. Permittee shall maintain records of the amount of water diverted and used to enable the State

Water Board to determine the amount of water that has been applied to beneficial use pursuant to Water Code Section 1605.

(0000015) H. No work shall commence and no water shall be diverted, stored or used under this permit until a copy of

a stream or lake alteration agreement between the State Department of Fish and Game and the permittee is filed with the Division of Water Rights. Compliance with the terms and conditions of the agreement is the responsibility of the permittee. If a stream or lake agreement is not necessary for this permitted project, the permittee shall provide the Division of Water Rights a copy of a waiver signed by the State Department of Fish and Game.

(0000063) This permit is issued and permittee takes it subject to the following provisions of the Water Code: Section 1390. A permit shall be effective for such time as the water actually appropriated under it is used for a useful and beneficial purpose in conformity with this division (of the Water Code), but no longer. Section 1391. Every permit shall include the enumeration of conditions therein which in substance shall include all of the provisions of this article and the statement that any appropriator of water to whom a permit is issued takes it subject to the conditions therein expressed.

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Section 1392. Every permittee, if he accepts a permit, does so under the conditions precedent that no value whatsoever in excess of the actual amount paid to the State therefor shall at any time be assigned to or claimed for any permit granted or issued under the provisions of this division (of the Water Code), or for any rights granted or acquired under the provisions of this division (of the Water Code), in respect to the regulation by any competent public authority of the services or the price of the services to be rendered by any permittee or by the holder of any rights granted or acquired under the provisions of this division (of the Water Code) or in respect to any valuation for purposes of sale to or purchase, whether through condemnation proceedings or otherwise, by the State or any city, city and county, municipal water district, irrigation district, lighting district, or any political subdivision of the State, of the rights and property of any permittee, or the possessor of any rights granted, issued, or acquired under the provisions of this division (of the Water Code). STATE WATER RESOURCES CONTROL BOARD

Barbara Evoy

Deputy Director for Water Rights Dated:

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September 25, 2012

STATE OF CALIFORNIA CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY

STATE WATER RESOURCES CONTROL BOARD

DIVISION OF WATER RIGHTS

PERMIT FOR DIVERSION AND USE OF WATER

PERMIT #####

APPLICATION 31488 of: United States Department of Interior, Bureau of Reclamation (MP-440) 2800 Cottage Way Sacramento, CA 95825

This permit is being issued in accordance with State Water Resources Control Board (State Water Board) Decision XXXX, adopted on XXXX XX, 2012. Therefore, Application 31488 filed on January 8, 2004 has been approved by the State Water Board SUBJECT TO PRIOR RIGHTS and to the limitations and conditions of this permit. Permittee is hereby authorized to divert and use water as follows: 1. Source of water Source: Tributary to:

(4) Prosser Creek Truckee River thence Pyramid Lake

within the County of Nevada The numbering for the points of diversion, points of rediversion, and places of storage for this permit, License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and the permit issued pursuant to Application 31487, are shown on the map [MAP NUMBER], dated [DATE], filed with the State Water Board.

1

2. Location of point of diversion and place of storage

By California Coordinate System of 1983 in Zone 2

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(4) Prosser Creek Dam (Prosser Creek Reservoir) North 2,269,206 feet and East 7,088,234 feet

NW ¼ of SW ¼

30

18N

17E

MD

1 Points of Diversion (1), (2) and (3) are points of diversion in the Little Truckee River watershed for Permit 11605, Licenses 3723 and

4196 and the permit issued pursuant to Application 31487. It is, therefore, intentionally not included in this permit.

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2a. Location of points of rediversion. Points (5) through (65) are on the Truckee River.

By California Coordinate System of 1983 in Zone 2

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(5) Farad Power Plant Ditch & Flume North 2,276,726 feet and East 7,119,940 feet

SW ¼ of NW ¼

30

18N

18E

MD

(6) Fleish Power Plant Ditch & Flume North 2,297,211 feet and East 7,124,864 feet

NE ¼ of SE ¼

6

18N

18E

MD

By Nevada West Coordinate System of 1983

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(7) Steamboat Canal North 14,843,385 feet and East 2,223,994 feet

NE ¼ of SW ¼

31

19N

18E

MD

(8) Coldron Ditch North 14,850,973 feet and East 2,226,583 feet

SE ¼ of NE ¼

30

19N

18E

MD

(9) Katz Ditch North 14,853,083 feet and East 2,226,202 feet

SE ¼ of SE ¼

19

19N

18E

MD

(10) Verdi Power Plant, Ditch & Flume North 14,853,117 feet and East 2,226,229 feet

SE ¼ of SE ¼

19

19N

18E

MD

(11) Washoe Power Plant Ditch North 14,862,548 766 feet and East 2,235,859 824 feet

NW ¼ of NE ¼

16

19N

18E

MD

(12) Hogan Ditch North 14,860,793 feet and East 2,236,229 feet

SW ¼ of NE ¼

16

19N

18E

MD

(13) Highland Ditch North 14,863862,059 766 feet and East 2,236235,256 824 feet

SW NW ¼ of SE

NE ¼

916

19N

18E

MD

(14) Mastin Ditch North 14,858,104 feet and East 2,244,534 feet

SE ¼ of SW ¼

14

19N

18E

MD

(15) Last Chance Ditch North 14,860,796 feet

SE ¼ of NE ¼

14

19N

18E

MD

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and East 2,247,614 feet

Location of points of rediversion (continued)

By Nevada West Coordinate System of 1983

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(16) Sparks-Capurro Ditch North 14,859,813 feet and East 2,250,976 feet

NW ¼ of SE ¼

13

19N

18E

MD

(17) Irwin-Mayberry Ditch North 14,856,488 feet and East 2,254,953 feet

NE ¼ of NW ¼

19

19N

19E

MD

(18) Lake Ditch (Lake Southside) North 14,856,917 feet and East 2,255,686 feet

NE ¼ of NW ¼

19

19N

19E

MD

(19) South Side Canal North 14,858,528 feet and East 2,259,680 feet

NE ¼ of SW ¼

17

19N

19E

MD

(20) Orr Ditch, Orr Extension & Spanish Spring Valley Ditch North 14,859,198 feet and East 2,260,521 feet

NE ¼ of SW ¼

17

19N

19E

MD

(21) Indian Flat Ditch North 14,858,946 feet and East 2,262,112 feet

NE ¼ of SE ¼

17

19N

19E

MD

(22) Orr Ditch Pump Station North 14,859,008 feet and East 2,262,704 feet

NE ¼ of SE ¼

17

19N

19E

MD

(23) Reno Power Ditch & Flume North 14,859,867 feet and East 2,267,642 feet

SE ¼ of NE ¼

16

19N

19E

MD

(24) Countryman Ditch North 14,862,075 feet and East 2,268,033 feet

NE ¼ of NE ¼

16

19N

19E

MD

(25) Chism Ditch North 14,862,003 feet and East 2,268,150 feet

NE ¼ of NE ¼

16

19N

19E

MD

(26) English Mill Ditch & English Mill Tailrace Ditch

NW ¼ of SE ¼

10

19N

19E

MD

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North 14,863,566 feet and East 2,271,673 feet

Location of points of rediversion (continued)

By Nevada West Coordinate System of 1983

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(27) Hayden Ditch or Court Ditch North 14,862,824 feet and East 2,272,659 feet

SE ¼ of SE ¼

10

19N

19E

MD

(28) Idlewild Pump Station North 14,862,625 feet and East 2,273,168 feet

SE ¼ of SE ¼

10

19N

19E

MD

(29) Sullivan & Kelly Ditch North 14,863,999 feet and East 2,276,707 feet

NW ¼ of SE ¼

11

19N

19E

MD

(30) Cochran Ditch North 14,863,699 feet and East 2,277,344 feet

NW ¼ of SE ¼

11

19N

19E

MD

(31) Riverside Mill Ditch & Flume (Claim #10) North 14,864,144 feet and East 2,277,365 feet

NW ¼ of SE ¼

11

19N

19E

MD

(32) Scott Ranch Ditch North 14,865,010 feet and East 2,279,290 feet

SW ¼ of NW ¼

12

19N

19E

MD

(33) Abbee Ditch North 14,866,265 feet and East 2,283,562 feet

SE ¼ of NE ¼

12

19N

19E

MD

(34) Perry Ditch North 14,866,298 feet and East 2,284,219 feet

SE ¼ of NE ¼

12

19N

19E

MD

(35) Eastman Ditch North 14,865,286 feet and East 2,287,441 feet

SW ¼ of NE ¼

7

19N

20E

MD

(36) No. Truckee Ditch (Glendale Plant) North 14,865,173 feet and East 2,287,712 feet

SW ¼ of NE ¼

7

19N

20E

MD

(37) Sessions Ditch North 14,865,057 feet and East 2,287,842 feet

SW ¼ of NE ¼

7

19N

20E

MD

(38) Pioneer Ditch

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North 14,862,744 feet and East 2,289,385 feet

SE ¼ of SE ¼ 7 19N 20E MD

Location of points of rediversion (continued)

By Nevada West Coordinate System of 1983

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(39) Stephens Ditch (Stevens) North 14,862,524 feet and East 2,291,611 feet

SE ¼ of SW ¼

8

19N

20E

MD

(40) Glendale Ditch North 14,862,252 feet and East 2,291,882 feet

SE ¼ of SW ¼

8

19N

20E

MD

(41) Hidden Valley Induction Well #4 North 14,861,057 feet and East 2,295,828 feet

SW ¼ of NW ¼

16

19N

20E

MD

(42) Largomarsino -Murphy Ditch (S. Largomarsino) North 14,858,576 feet and East 2,316,686 feet

NW ¼ of SE ¼

18

19N

21E

MD

(43) Largomarsino – Noce Ditch (N. Largomarsino) North 14,858,813 feet and East 2,318,003 feet

NE ¼ of SE ¼

18

19N

21E

MD

(44) Groton Ditch North 14,858,234 feet and East 2,324,482 feet

NE ¼ of SE ¼

17

19N

21E

MD

(45) Sheep Ranch Ditch North 14,859,130 feet and East 2,325,476 feet

NW ¼ of SW ¼

16

19N

21E

MD

(46) McCarran North Side Ditch North 14,866,397 feet and East 2,338,153 feet

NE ¼ of NW ¼

11

19N

21E

MD

(47) McCarran South Side Ditch North 14,870,317 713 feet and East 2,342,460 338 feet

SW ¼ of NW ¼

1

19N

21E

MD

(48) Old Ditch North 14,871,849 feet and East 2,349,880 feet

NW ¼ of NE ¼

6

19N

22E

MD

(49) Hill Ditch

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North 14,876,905 feet and East 2,354,774 feet

NW ¼ of NE ¼ 32 20N 22E MD

Location of points of rediversion (continued)

By Nevada West Coordinate System of 1983

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(50) Tracy Power Plant North 14,877,698 feet and East 2,359,590 feet

SE ¼ of SW ¼

28

20N

23E22

E

MD

(51) Derby Dam & Truckee Canal North 14,884885,928 141 feet and East 2,380,516 928 feet

NE ¼ of SW ¼

19

20N

23E

MD

(52) Preston Ditch North 14,885,468 feet and East 2,386,178 feet

SE ¼ of NW ¼

20

20N

23E

MD

(53) Washburn Ditch North 14,885,521 feet and East 2,396,933 feet

SE ¼ of NW ¼

22

20N

23E

MD

(54) Gregory Ditch North 14,888,853 feet and East 2,405,578 feet

SE ¼ of SE ¼

14

20N

23E

MD

(55) Wadsworth Power Ditch North 14,889,268 feet and East 2,406,873 feet

NW ¼ of SW ¼

13

20N

23E

MD

(56) Herman Ditch North 14,891892,957 654 feet and East 2,417,775 832 feet

NW ¼ of NW ¼

17

20N

24E

MD

(57) Pierson Ditch North 14,894,902 feet and East 2,422,828 feet

NW ¼ of SW ¼

9

20N

24E

MD

(58) Olinghouse No. 1 Ditch North 14,897,868 feet and East 2,425,862 feet

NW ¼ of NE ¼

9

20N

24E

MD

(59) Fernley North 14,899,217 feet and East 2,427,535 feet

SW ¼ of NW SW ¼

93

20N

24E

MD

(60) Proctor Ditch North 14,901900,290 772 feet and East 2,428427,199 717

SW ¼ of NW ¼

3

20N

24E

MD

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feet

(61) Fellnagle Ditch North 14,905,654 feet and East 2,425,317 feet

NW ¼ of SE ¼

33

21N

24E

MD

Location of points of rediversion (continued)

By Nevada West Coordinate System of 1983

40-acre subdivision of public land survey or projection thereof

Section

Township Range Base and Meridian

(62) Olinghouse No. 2 Ditch North 14,914,468 feet and East 2,431,328 feet

SW ¼ of SE ¼

22

21N

24E

MD

(63) Gardella Ditch North 14,922,553 feet and East 2,428,236 feet

SW ¼ of NW ¼

15

21N

24E

MD

(64) Olinghouse No. 3 Ditch North 14,923,152 feet and East 2,428,587 feet

SW ¼ of NW ¼

15

21N

24E

MD

(65) Indian Ditch (Nixon Ditch) North 14,959,013 047 feet and East 2,408409,112 488 feet

SW ¼ of SW NE ¼

1812

22N

23E

MD

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3. Purpose of use 4. Place of use

Township Range Base and Meridian

Municipal, Domestic, Industrial, Irrigation,* Stockwatering, Fish Culture, Water Quality, Recreational, Fish and Wildlife Preservation and Enhancement, and Incidental Power**

The place of use is shown on map [MAP NUMBER] filed with the State Water Board, dated [DATE].

13N 17 & 18E MD

14N 16 – 18E MD

15N 16 – 18E MD

16N 16 – 18E MD

17N 15 – 20E,

24 – 31E

MD

18N 14 – 21E,

24 – 31E

MD

19N 14 – 31E MD

20N 18 – 32E MD

21N 18 – 26E,

29 – 32E

MD

22N 20 – 24E MD

23N 20 – 24E MD

24N 20 – 24E MD

25N 20 – 24E MD

26N 20 – 24E MD

27N 20 – 24E MD

28N 23 & 24E MD

* The maximum area irrigated in any one year under License 3723 (Application 5169), License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 99,000 net acres within a total gross area of 143,480 acres as follows: The maximum area irrigated in any one year under License 3723 (Application 5169) shall not exceed the following:

Truckee Meadows: 29,000 acres in the vicinity of Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; all within MDB&M, and Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E; all within MDB&M.

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The maximum area irrigated in any one year under License 4196 (Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permits issued pursuant to Application 31487 and Application 31488, shall not exceed a total of 96,800 net acres within a total gross area of 143,480 acres as follows:

Truckee Meadows: 26,800 net acres within a gross area of 36,340 acres in the vicinity of Reno, Nevada, within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E; all within MDB&M, and Newlands Project: 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada, within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E; all within MDB&M.

The Irrigated Places of Use are shown on map [MAP NUMBER], dated [DATE], filed with the State Water Board. The maximum area irrigated in any one year under this permit, License 3723 (Application 5169), License 4196

(Application 9247), Permit 11605 (Application 15673), License 10180 (Application 18006), and permit issued pursuant to Application 31487, shall not exceed a total of 96,800 net acres within a total gross area of 143,480 acres as follows:

Truckee Meadows - 26,800 net acres within a gross area of 36,340 acres in the vicinity of Reno, Nevada,

within lands described as follows: T18N, R18E-R21E; T19N, R18E-R21E; T20N, R18E-R21E, and Newlands Project - 70,000 net acres within a gross area of 107,140 acres in the vicinity of Fallon, Nevada,

within lands described as follows: T17N, R24E-R31E; T18N, R24E-R31E; T19N, R24E-R31E; T20N, R24E-R31E, all within MDB&M. ** Incidental Power use at the following locations:

Powerhouse Subdivision Section Township Range Base and Meridian

Farad SE ¼ SE ¼ 12 18N 17E MD

Fleish NE ¼ SE ¼ 30 19N 18E MD

Verdi NW ¼ SE ¼ 8 19N 18E MD

Washoe SW ¼ SW ¼ 14 19N 18E MD

5. The water appropriated shall be limited to the quantity which can be beneficially used and shall not exceed

30,000 acre-feet per annum to be collected from October 1 of each year to August 10 of the succeeding year.

(0000005C) 6. The total quantity of water collected to storage at Prosser Creek Reservoir under this permit and License

10180 (Application 18006) shall not exceed 30,000 acre-feet per year. (0000005L)

7. The capacity of the reservoir covered by this permit and License 10180 (Application 18006) shall not

exceed 29,800 acre-feet. (0000005N)

8. This permit does not authorize collection of water to storage outside of the specified season to offset

evaporation and seepage losses or for any other purpose. (0000005I)

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9. Construction work and complete application of the water to the authorized use shall be prosecuted with reasonable diligence and be completed by December 31, 2022.

(0000009) 9. Permittee shall consult with the Division of Water Rights as to whether permittee is an “urban water

supplier” as defined in California Water Code section 10617. If permittee is an urban water supplier, then within one year from issuance of this permit, permittee shall submit to the State Water Board its Urban Water Management Plan as prepared and adopted in conformance with California Water Code section 10610, et seq., or a comparable urban water management plan, as may be authorized under Nevada law that contains similar information. The plan may be supplemented by any additional information that may be required by the State Water Board.

All cost-effective measures identified in the Urban Water Management Plan or comparable plan and any

supplements thereto shall be implemented in accordance with the schedule for implementation found therein.

(0000029A mod.) 10. If it is determined after permit issuance that the as-built conditions of the project are not correctly

represented by the map(s) prepared to accompany the application, permittee shall, at his expense have the subject map(s) updated or replaced with equivalent as-built map(s). Said revision(s) or new map(s) shall be prepared by a civil engineer or land surveyor registered of licensed in the State of California and shall meet the requirements prescribed in section 715 and sections 717 through 723 of the California Code of Regulations, Title 23. Said revision(s) or map(s) shall be furnished upon request of the Chief, Division of Water Rights.

(0000030)

11. In compliance with section 5937 of the Fish and Game Code, if storage or diversion of water authorized by

this permit is by means of a dam, permittee shall allow sufficient water at all times to pass through a fishway or, in the absence of a fishway, allow sufficient water to pass over, around, or through the dam to keep in good condition any fish that may be planted or exist below the dam; provided that, during a period of low flow in the stream, upon approval of the California Department of Fish and Game, this requirement will be satisfied if sufficient water is passed through a culvert, waste gate, or over or around the dam to keep in good condition any fish that may be planted or exist below the dam if it is impracticable or detrimental to pass the water through a fishway. In the case of a reservoir, this provision shall not require the passage or release of water at a greater rate than the unimpaired natural inflow into the reservoir.

(0140069) or (0210069)

12. No water shall be rediverted at the Farad Diversion Dam, except in compliance with the bypass flow

requirement imposed as a condition of water quality certification for the Farad Diversion Dam Replacement Project. Further, no water shall be rediverted at the Farad Diversion Dam unless (1) permittee has submitted information to the Deputy Director for Water Rights demonstrating that the permittee has acquired access to redivert water or made arrangements with TMWA to divert water on permittee’s behalf, and (2) the Deputy Director for Water Rights advises the permittee that it has made a satisfactory demonstration.To ensure that the bypass flow requirement imposed as a condition of water quality certification for the Farad Diversion Dam Replacement Project is met, permittee shall bypass a minimum flow of 150 cfs in the bypass reach below the Farad diversion dam, or total Truckee River flow immediately upstream of the diversion dam, whichever is less, in the operation area, or applicable bypass flow as it may be revised in the water quality certification for the project.

No diversion shall be allowed at the points of diversion or rediversion authorized by this permit unless the

applicable bypass flows are met. (0140400)

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13. Water diverted for Incidental Power use under this permit is for nonconsumptive use and is to be released

to the Truckee River at the following locations: Farad Powerhouse Return: By California Coordinate System of 1983, Zone 2, North 2,284,919 feet

and East 7,117,723 feet. Fleish Powerhouse Return: By Nevada Coordinate System of 1983, West Zone, North

14,848,874 feet and East 2,226,837 feet. Verdi Powerhouse Return: Nevada Coordinate System of 1983, West Zone, North 14,864,373 feet

and East 2,230,562 feet. Washoe Powerhouse Return: Nevada Coordinate System of 1983, West Zone, North 14,857,794 feet

and East 2,243,430 feet.

(0000111 mod.)

14. The permittee shall obtain all necessary state and local agency permits required by other agencies prior to construction and diversion of water. Copies of such permits and approvals shall be forwarded to the Chief, Division of Water Rights.

(0000203) 15. Water stored in Prosser Creek Reservoir pursuant to pre-1914 permits issued by the Nevada State

Engineer under Nevada Law, and recognized pursuant to the provisions of California Water Code sections 1231 and 1232 shall not be considered as water stored pursuant to the provisions of this Permit.

(9990999)

16. Permittee shall measure and monitor amounts diverted, collected to storage, withdrawn from storage and rediverted for beneficial use under this permit. The permittee shall submit a plan for approval by the State Water Board that includes a description and location of the measuring devices, frequency of data collection, the methods for recording and reporting data to the State Water Board, and any calculations required to develop the records. The plan shall identify how the permittee will ensure that the total cumulative amount of water collected, stored and used at Prosser Creek Reservoir will not exceed the authorized amount under the permit. The plan shall also identify how the amounts collected and beneficially used under all of the permits and licenses for coordinated reservoir storage under TROA will be accounted for under the individual permits and licenses and any other bases of right. The plan shall be submitted and approved by the Deputy Director for Water Rights prior to diversion under this permit. Permittee shall implement the plan upon approval. A record of such measurements shall be maintained by the permittee, and made available to interested persons upon reasonable request. A copy of the records shall be submitted to the State Water Board with the annual “Progress Report by Permittee.”

(0100900) 17. Permittee shall maintain the existing outlet pipe for Prosser Creek Reservoir in proper working order.

(000000S)

18. Diversions under this permit shall be subject to the interstate allocation authorized under the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104 Stat. 3289) when the allocation becomes effective.

(9990900) 19. Due to the permittee’s ability to exchange water among water right holders under the Truckee River

Operating Agreement (TROA), beneficial uses for water shall only be credited to the permit or license under which the water was originally diverted.

(9990999)

20. All diversions, storage, use of water and operations under this permit shall be in accordance with the provisions contained in this permit, the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (Pub.L. No. 101-618 (Nov. 16, 1990), Tit. II, 104 Stat. 3289) (Settlement Act), and TROA, which is on file

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with the State Water Resources Control Board. The Board retains jurisdiction for the purpose of amending the terms of this permit to conform to the terms of TROA and the Settlement Act.

(0430300) 21. Diversion of water under this permit is subject to regulation by the TROA Administrator appointed to

enforce the terms and conditions of the TROA to the extent such regulation is not inconsistent with the

terms and conditions of this permit. (000000N mod.)

22. Permittee shall notify the Deputy Director for Water Rights, in writing, of any adjustments to operations or

changes to TROA made in accordance with Article Thirteen of TROA that will affect the diversion and use of water under this permit.

(0490300)

23. The State Water Resources Control Board reserves jurisdiction in the public interest to modify the terms and conditions of this permit, including imposition of requirements to alter project facilities or operations and to modify instream flow releases, in the event of unforeseen adverse impacts to fish or wildlife. Board action will be taken only after notice to interested parties and opportunity for hearing.

(000000M)

THIS PERMIT IS ALSO SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS: A. The amount authorized for appropriation may be reduced in the license if investigation warrants.

(0000006) B. Progress reports shall be submitted promptly by permittee when requested by the State Water Board

until a license is issued. (0000010)

C. Permittee shall allow representatives of the State Water Board and other parties, as may be authorized

from time to time by said State Water Board, reasonable access to project works to determine compliance with the terms of this permit.

(0000011)

D. Pursuant to California Water Code sections 100 and 275, and the common law public trust doctrine, all rights and privileges under this permit and under any license issued pursuant thereto, including method of diversion, method of use, and quantity of water diverted, are subject to the continuing authority of State Water Board in accordance with law and in the interest of the public welfare to protect public trust uses and to prevent waste, unreasonable use, unreasonable method of use, or unreasonable method of diversion of said water. The continuing authority of the State Water Board may be exercised by imposing specific requirements over and above those contained in this permit with a view to eliminating waste of water and to meeting the reasonable water requirements of permittee without unreasonable draft on the source. Permittee may be required to implement a water conservation plan, features of which may include but not necessarily be limited to (1) reusing or reclaiming the water allocated; (2) using water reclaimed by another entity instead of all or part of the water allocated; (3) restricting diversions so as to eliminate agricultural tailwater or to reduce return flow; (4) suppressing evaporation losses from water surfaces; (5) controlling phreatophytic growth; and (6) installing, maintaining, and operating efficient water measuring devices to assure compliance with the quantity limitations of this permit and to determine accurately water use as against reasonable water requirements for the authorized project. No action will

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be taken pursuant to this paragraph unless the State Water Board determines, after notice to affected parties and opportunity for hearing, that such specific requirements are physically and financially feasible and are appropriate to the particular situation.

The continuing authority of the State Water Board also may be exercised by imposing further limitations on the diversion and use of water by the permittee in order to protect public trust uses. No action will be taken pursuant to this paragraph unless the State Water Board determines, after notice to affected parties and opportunity for hearing, that such action is consistent with California Constitution Article X, Section 2; is consistent with the public interest; and is necessary to preserve or restore the uses protected by the public trust.

(0000012) E. The quantity of water diverted under this permit and under any license issued pursuant thereto is subject

to modification by the State Water Board if, after notice to the permittee and an opportunity for hearing, the State Water Board finds that such modification is necessary to meet water quality objectives in water quality control plans which have been or hereafter may be established or modified pursuant to Division 7 of the Water Code. No action will be taken pursuant to this paragraph unless the State Water Board finds that (1) adequate waste discharge requirements have been prescribed and are in effect with respect to all waste discharges which have any substantial effect upon water quality in the area involved, and (2) the water quality objectives cannot be achieved solely through the control of waste discharges.

(0000013) F. This permit does not authorize any act that results in the taking of a threatened or endangered species

or candidate species or any act that is now prohibited, or becomes prohibited in the future, under either the California Endangered Species Act (Fish & G. Code, §§ 2050 - 2097) or the federal Endangered Species Act (16 U.S.C.A. §§ 1531 - 1544). If a "take" will result from any act authorized under this water right, the permittee shall obtain authorization for an incidental take prior to construction or operation of the project. Permittee shall be responsible for meeting all requirements of the state and federal Endangered Species Acts for the project authorized under this permit.

(0000014) G. Permittee shall maintain records of the amount of water diverted and used to enable the State

Water Board to determine the amount of water that has been applied to beneficial use pursuant to Water Code Section 1605.

(0000015) H. No work shall commence and no water shall be diverted, stored or used under this permit until a copy of

a stream or lake alteration agreement between the State Department of Fish and Game and the permittee is filed with the Division of Water Rights. Compliance with the terms and conditions of the agreement is the responsibility of the permittee. If a stream or lake agreement is not necessary for this permitted project, the permittee shall provide the Division of Water Rights a copy of a waiver signed by the State Department of Fish and Game.

(0000063) This permit is issued and permittee takes it subject to the following provisions of the Water Code: Section 1390. A permit shall be effective for such time as the water actually appropriated under it is used for a useful and beneficial purpose in conformity with this division (of the Water Code), but no longer.

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Section 1391. Every permit shall include the enumeration of conditions therein which in substance shall include all of the provisions of this article and the statement that any appropriator of water to whom a permit is issued takes it subject to the conditions therein expressed. Section 1392. Every permittee, if he accepts a permit, does so under the conditions precedent that no value whatsoever in excess of the actual amount paid to the State therefor shall at any time be assigned to or claimed for any permit granted or issued under the provisions of this division (of the Water Code), or for any rights granted or acquired under the provisions of this division (of the Water Code), in respect to the regulation by any competent public authority of the services or the price of the services to be rendered by any permittee or by the holder of any rights granted or acquired under the provisions of this division (of the Water Code) or in respect to any valuation for purposes of sale to or purchase, whether through condemnation proceedings or otherwise, by the State or any city, city and county, municipal water district, irrigation district, lighting district, or any political subdivision of the State, of the rights and property of any permittee, or the possessor of any rights granted, issued, or acquired under the provisions of this division (of the Water Code). STATE WATER RESOURCES CONTROL BOARD

Barbara Evoy

Deputy Director for Water Rights Dated: